The violence marked a rare use of Israeli airpower in the territory. During the clashes, Palestinian militants detonated a roadside bomb next to an Israeli military vehicle.
The escalating conflict in Israel and the occupied territories has played out against a backdrop of religious celebrations — Ramadan for Muslims, Passover for Jews and Easter for Christians.
Israeli forces shot and killed three Palestinian gunmen who opened fire on troops in the occupied West Bank, the military said, the latest bloodshed in a year-long wave of violence in the region.
Elan Ganeles of Connecticut was visiting Israel for a friend's wedding. The 27-year-old was shot on a road frequented by international tourists that passes through the West Bank toward the Dead Sea.
The Israeli military says it was targeting a militant group in the West Bank called the Lion's Den. So far this year, at least 55 Palestinians — including civilians — have been killed.
The rare daytime arrest operation triggered one of the bloodiest battles in nearly a year of fighting, leaving shops in Nablus riddled with bullets and a building reduced to rubble.
Israeli Prime Minister Benjamin Netanyahu on Saturday announced a series of punitive steps against the Palestinians, including plans to beef up Jewish settlements in the occupied West Bank.
The Palestinian Authority said it was cutting off police coordination with Israeli forces and Middle Eastern countries condemned the raid, warning of possible fallout.