TEL AVIV (JTA)—The murder of a 16-year old girl at Jerusalem’s gay pride parade has sparked calls for LGBT-rights legislation—as well as pushback from those who oppose it.

Shira Banki died Sunday after being stabbed while marching in the parade on Thursday night. Five others were wounded in the stabbing.

“It never crossed our mind that Shira would be murdered as a symbol,” her parents said in a eulogy Monday, according to a copy of the text on the Israeli news site Ynet. “An unnecessary death of a young girl, innocent and full of good intentions and deeds. A death that gives us...