The attacker, 37-year-old Nimer Mahmoud Ahmad Jamal, was a father of four from the West Bank village of Beit Surik.
PA President Mahmoud Abbas, who heads Fatah, has himself condemned the attack.
Decision to seal off access to Palestinians came after deadly Har Adar terror attack.
Decision made following Har Adar terror attack, which left three Israelis dead last week.
Arab day laborers remain barred from Jewish settlement as probe into terror attack continues.
Additional security protocols will also remain in effect in and around Har Adar.
Prime Minister Benjamin Netanyahu called on Abbas to condemn the attack on Wednesday.
“We should not change the policy,” he said.
Plans to demolish the assailant's home have been expedited.
Ya'alon wrote on Facebook it took eight hours to remove the page and meanwhile hosted incitement to murder Israelis on his page. But hours later, he said, Facebook assured him it was removed faster.
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