US Secretary of State Antony Blinken has called for Israel and the Palestinians to take "urgent steps" to restore calm amid escalating violence.

At a news conference following talks with Israeli Prime Minister Benjamin Netanyahu on Monday, Mr Blinken expressed his condolences for what he called the "horrific terrorist attack".

Two Palestinians were also shot dead in separate incidents in the occupied West Bank ahead of Mr Blinken's arrival.

An 18-year-old armed with a gun was killed by an Israeli security guard near the northern West Bank settlement of Kedumim on Saturday night.

On Monday morning troops opened fire on a vehicle which they said drove away after hitting a soldier, killing the 26-year-old driver, in Hebron.

The government has also pledged to expand and accelerate the issuing of gun licences to Israeli citizens, as well as to take measures against "the families of terrorists that support terrorism" including removing members' residency and social security rights.