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Israeli soldiers patrolled the West Bank city of Nablus on Sunday, combing the area for suspected Palestinian gunmen who killed an Israeli couple.
Soldiers arrested at least one Palestinian and raided and searched his home, according to the man's brother.
The reason for the arrest was not clear and the Israeli military did not immediately return a request for comment.
Hundreds of Israeli troops have been deployed to the West Bank to search for the gunmen who killed the settler couple as they drove home on Thursday. Their four young children were in the back seat of the car during the shooting but were unharmed.
The Israeli army said on Sunday that troops had arrested two Palestinians suspected of "terror activity", and that one armed suspect barricaded himself inside a building with a fire breaking out during the incident in the West Bank's Jenin refugee camp.
Witnesses at the camp said that Israeli troops fired a "small missile" at the house to force the suspect out.
A Palestinian medic said Israeli troops shot and wounded at least 18 Palestinians during clashes which broke out as the suspect's house was surrounded.