Palestinian kills two Israelis before being shot dead

A Palestinian killed two Israelis in the occupied West Bank, stabbing one man to death and knifing several others, then killing another with a stolen car before being shot dead himself, officials said.

The latest surge in violence came hours before Israel swears in its new parliament, with far-right lawmakers poised to be members of the cabinet vowing a crackdown on Palestinian violence.

The Israeli army reported a "stabbing attack" near the Ariel Industrial Zone in the northern West Bank.

"A terrorist arrived at the entrance gate of the zone and stabbed civilians in the area," a statement from the army said.

The attacker then headed to "a nearby gas station and stabbed additional civilians," the army said, stole a car and fled.

"The terrorist fled the gas station by driving a stolen vehicle... committed an intended car accident and rammed an additional civilian," the statement said.

The emergency service said a 50-year-old was killed as a result of the car ramming, and another man stabbed on the highway was taken to hospital in a serious condition.

The army said a soldier then "neutralised" the attacker, adding that troops have launched a manhunt for a second individual suspected of involvement.

The Palestinian health ministry named the Palestinian shot dead by Israeli forces as Mohammed Souf, 18, without providing further details.

The injured were taken to a hospital in Petah Tikvah, the Israeli emergency service said.