The Israeli army said that it raided the Nablus city area in the West Bank after an Israeli was killed in a drive-by shooting by suspected Palestinian assailants.
A military statement said the army beefed up its presence in the area of the attack overnight, with soldiers canvassing the area to locate the suspected gunmen.
The forces also cordoned off the villages and set up roadblocks.
"Entrances and exits to and from the villages surrounding Nablus will be possible only after security checks," the statement read.
On Wednesday morning, Israeli Chief of Staff Gadi Eizenkot arrived at the scene in Havat Gilad, an illegal outpost near Nablus. He received a briefing on the attack and the efforts to find the perpetrators.
Eizenkot said the army believes the shooting was carried out by a Palestinian terror cell.
"The main mission at the moment is to locate the cell, to stop it and to prevent further terror events, and also to prepare for further activity in the area over the weekend," he said in a statement released by the military.
On Tuesday night, Rabbi Raziel Shevah, a 35-year-old man, was shot multiple times from a passing car. He was rushed to hospital in a critical condition but died of his wounds later.
Shevah was identified by local media as a resident of the Havat Gilad and a father of six.