An IDF jeep traveling near the village of Al-Arroub southwest of Bethlehem came under a Molotov cocktail attack on Wednesday.
The jeep was struck by several Molotov cocktails, an IDF spokeswoman said, adding that soldiers exited the vehicle and opened fire at the Palestinian attackers.
Several Palestinians were injured in the incident, and soon after it ended, Palestinian medical sources said a 21-year-old woman died of gunshot wounds.
The IDF is investigating the circumstances of the incident.
Reuters cited Palestinian witnesses as claiming that a woman and her companions were walking to Al-Arroub College when men in Israeli military uniforms traveling in a civilian car shot at the group.
Later on Wednesday, Palestinian rioters clashed with the IDF in the area.
Earlier, a 16-year-old Palestinian youth, injured during clashes with the IDF last Friday, died of his injuries. Saleh al-Amareen had been in critical condition after being shot near Bethlehem.
In recent weeks, Military police launched investigations into the deaths of two Palestinian men shot in separate incidents.
Brig-Gen. Hagai Mordechai, Commander of the IDF's Judea and Samaria Division,
has ordered all brigade commanders in the West Bank to review the rules of
engagement, following a spate of lethal shootings.
The IDF Spokesman
Office said that no further details could be provided about the shooting that
occurred at Al-Arroub on Wednesday until a Military Police investigation was
complete.
The first shooting occurred on November 17 in the West Bank village of Nabi Salah northwest of Ramallah last year, during which the army said a violent disturbance broke out.
During the riot, dozens of Palestinians threw rocks at security forces who responded with riot dispersal means.
Following the clash, Palestinian sources reported that one man died of gunshot wounds at a local hospital.
The second incident being investigated involves a fatal shooting last week of a Palestinian youth near the village of Burdus.
During that incident, army sources said that the youth was seen trying to cut open the West Bank security fence. Soldiers shouted verbal warnings and fired shots in the air.
Reuters contributed to this report.