Violence broke out in the occupied West Bank after Israeli forces conducted a rare raid into the Palestinian city of Ramallah early on Thursday.
A large military convoy arrived in Ramallah's city centre, leading hundreds of Palestinians to gather in the area, Reuters reported. Ramallah is the seat of the Palestinian government.
The military said it was an operation to demolish the house of an assailant.
Some Palestinian youths hurled stones at the Israeli forces, who fired live bullets, stun grenades and tear gas at the crowd, a witness told Reuters.
Rubbish bins that were set on fire blocked roads as ambulance sirens wailed.
The Palestinian Health Ministry said at least six people were taken to hospital for treatment, including three who sustained gunshot wounds.
The Israeli military said its forces were operating in Ramallah "to demolish the residence of the terrorist who carried out the bombing attack in Jerusalem last November".
The twin blasts killed two people, including an Israeli-Canadian teenager, and wounded at least 14 others in what police said were explosions of improvised bombs that were planted at bus stops near the city exit and in a junction leading to a settlement.
"The demolition of the homes of fighters is a collective punishment that falls under the war crimes committed by the occupation against our people," said Abdel Fattah Dola, a member of Palestinian President Mahmoud Abbas's Fatah party.
Israel has said the policy of demolishing the homes of perpetrators is both punitive and a deterrence to potential attackers.
Hours earlier, the US envoy to Palestinians, Hady Amr, met with senior Palestinian official Hussein Al Sheikh.
Violence in the occupied West Bank, one of the territories where Palestinians seek statehood, has increased over the past year.
Israel has intensified its military raids amid a spate of street attacks carried out by Palestinians in its cities.
