ISTANBUL, Turkey — A Turkish-American activist who was killed by Israeli fire in the West Bank was laid to rest on Saturday in her hometown in Turkey with thousands lining the streets and anti-Israeli feelings in the country rising from a conflict that threatens to spread across the region.

Aysenur Ezgi Eygi, a 26-year-old woman from Seattle, was shot dead Sept. 6 by an Israeli soldier during a demonstration against Israeli West Bank settlements, according to an Israeli protester who…