A Palestinian named Abdul Rahman Akouba was arrested during the raid in Nablus on Monday, according to Palestinian reports.
Two Palestinians were killed in armed clashes that broke out between Israeli forces and Palestinians during the arrests in Nablus.
The Hamas operative was identified as Muhammad Saleh Hamdan. who has been arrested in the past by both Israeli and Palestinian authorities.
The two tourists managed to escape the crowd and were eventually escorted back to Israel by security forces.
During the visit, armed clashes broke out between Israeli forces and Palestinians in the area, with three Palestinians injured amid the clashes.
Three M-16 rifles, a pistol and magazines were confiscated from the Palestinians by the IDF.
The incident at the funeral sparked a wave of protests and condemnations from many Palestinians.
Since its founding, the group, which includes members from multiple Palestinian factions, has carried out a series of shooting attacks against Israeli security forces and civilians.
Price said that while the US' immediate goal is not to bring the parties together to negotiate a solution, it aims to support them as they work to deescalate tensions.
The US is concerned by the "levels of violence in Israel and the West Bank," Ned Price said following a deadly day in the West Bank.