The Israeli military said in a statement that troops had come under attack during the operation to destroy the home of Muhammad Abu Shaheen, who shot dead Danny Gonen in the West Bank in June.
"Suspects opened fire at the forces and in response to the immediate danger they fired toward the attackers. Three hits were confirmed. In addition, hundreds of Palestinians attacked the force with fire bombs, IEDs and rocks," the army said.
There has been a surge of street violence since the beginning of October, with at least 14 Israelis killed in stabbings and shootings or being run down by cars. Israeli forces have killed at least 78 Palestinians, 45 of whom Israel says were carrying out or were about to carry out attacks.
The surge in violence across Israel, Jerusalem and the Israeli-occupied West Bank has been fueled in part by a dispute over access to a site in Jerusalem holy to both Muslims and Jews.
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