Latest round of violence brings death toll of Palestinians shot dead by Israeli forces over the last six weeks to 80.
At least one Israeli has been killed and five others wounded after gunmen opened fire on an Israeli car from their vehicle in the Gush Etzion settlement south of Bethlehem in the occupied West Bank.
Micky Rosenfeld, an Israeli police spokesman, said on Thursday that two of the attackers were shot and captured while the search for the third was still going on.
Israeli media reported that the attackers kept driving after opening fire and rammed their car into an oncoming vehicle.
The attack was the latest in a two month-long upsurge in violence.
Earlier on Thursday, two Israelis were killed in a stabbing attack in Tel Aviv.