Two Israeli were killed and two other wounded in a drive-by shooting near the West Bank city of Ramallah on Thursday, according to the Israeli military.
In a statement, the army said a Palestinian gunman opened fire on a bus carrying Israelis at Asaf Junction, north of Jerusalem.
The army said it has launched a manhunt for the attacker, who fled the scene unscathed.
Local residents earlier told Anadolu Agency that two Palestinians opened fire on settlers from their moving car.
There was no claim of responsibility for the attack.
Following the attack, the Israeli army closed all entrances to Ramallah and ordered forces to remain on standby.
Thursday’s attack came hours after three Palestinians were martyred by Israeli forces for their alleged involvement in shooting attacks in the West Bank, in which two Israelis were killed and nine others injured.
Tension has been running high in the occupied Palestinian territories since last year when U.S. President Donald Trump unilaterally recognized Jerusalem as the capital of Israel.
Jerusalem remains at the heart of the Israel-Palestine conflict, with Palestinians hoping that East Jerusalem -- now occupied by Israel -- might eventually serve as the capital of a future Palestinian state.