Kamlah al-Shuli, 20, was hit by two bullets in the chest when Israeli soldiers opened fire on her vehicle in the West Bank city of Nablus on Saturday.
She was reportedly on her way to nearby al-Najah university. None of the other seven passengers in the taxi was hurt.
The driver has been detained for questioning, Israeli military sources told Reuters.
Israel occupation forces maintain roadblocks throughout the Palestinian territories, which they say are necessary to prevent resistance attacks. Human rights groups say the roadblocks are a form of collective punishment.
The student’s death brings the toll to 3643 since the start of the al-Aqsa Intifada (uprising) in September 2000, according to an AFP count.
Nablus has been tense following a shooting incident shortly before dawn on Friday.
Several members of the orthodox Hasidic Bratslav Jewish sect were injured when their car was fired upon as they left the religious site of Joseph’s Tomb in Nablus.
They had secretly entered the Palestinian area in defiance of an Israeli army ban on Jews visiting the religious site.
Israeli troops have been combing the area following the attack.