The two sisters that were killed in the Jordan Valley in the West Bank on Friday morning were British nationals, according to a report from the British outlet Sky News citing a UK official.
Their mother was also seriously injured in the attack.
The family reportedly made aliyah to Israel around 2005, according to Sky News correspondent Ali Bunkall. The correspondent also stated that the targeting cars with Israeli license plates in the West Bank "have become far more commonplace in the last few weeks."
Britain's Foreign Office did not immediately respond to a request for confirmation.
The sisters' father was in a separate vehicle and arrived at the scene after rescue efforts had begun.
Defense Minister Yoav Gallant held a situation assessment in light of the attack.
The attack came in light of recent escalations of violence in Israel and its surrounding territories, with rockets being fired into the country from both the Gaza Strip and Lebanon as well as clashes between Palestinian rioters and Israeli police on Thursday at the al-Aqsa mosque.
Tzvi Joffre and Reuters contributed to this report.