Khaled Jarrar said Tuesday his art was meant as a reminder that Palestinians live under Israeli occupation, at a time when gay rights are in the news after the U.S. allowed same-sex weddings.
But protesters perceived it as support for homosexuality, a taboo subject in Palestinian society.
The painting ignited angry social media responses among Palestinians and activists whitewashed the flag on Monday.
The flag was painted on the best known section of Israel's graffiti-covered barrier, next to a portrait of Yasser Arafat.
