Two settlers were wounded by gunfire at a vehicle they were traveling in in the town of Huwwara, south of Nablus.
Israeli sources confirmed that two settlers were injured, one seriously, and that the perpetrator withdrew.
Al-Jazeera correspondent reported that the occupation forces deployed heavily on the main Huwara Street and began large-scale search operations for the perpetrator of the attack.
Israeli media reported that the perpetrator of the Huwara attack avoided shooting at children who were in the settlers' vehicle.
Israeli Army Radio said its forces had "neutralized" a Palestinian and was being examined to see if the attacker was in Huwwara.
The Palestinian Red Crescent said the occupation prevented an ambulance from entering Huwara after reports of two Palestinians injured.
According to local Palestinian sources, the Israeli occupation forces closed the entrances to the city of Nablus.
In the first factional reaction, the spokesman for the Islamic Resistance Movement (Hamas) said that the commando operation in Huwara is a natural reaction to the crimes of the occupation against our Palestinian people, adding that the resistance continues and escalates in the West Bank and will not stop unless the goals of our people are achieved with freedom.