Israel on Wednesday deployed military forces in the town of Aqraba, southeast the city of Nablus, sealing off the town and blocking residents' movements.
This came as part of its pursuit of the suspected perpetrators of a drive-by shooting, which left three settlers injured, at the northern West Bank junction of Zaatara on Sunday.
Tensions have been high in the West Bank and Jerusalem with clashes taking place near Jerusalem’s Old City between Israeli police and Palestinians.
Earlier, Israeli soldiers seized a vehicle that was reportedly used in the shooting after it was abandoned in Aqraba.
The Israeli Security Agency, also known as Shin Bet, said it had arrested a Palestinian suspect over the shooting, identified as 44-year-old Montasser Shalabi, in the village of Silwad near Ramallah, AFP reported.
Palestinian sources said Shalabi is a dual US national.
Also, the Shin Bet said the man was not affiliated with any militant groups.
The Israeli army has occupied the West Bank since 1967.
About 2.8 million Palestinians live in this territory, as do some 475,000 Israelis living in settlements deemed illegal by international law.