At least two Palestinians were killed and several others injured when a gun battle broke out early Sunday between militants and Israeli troops in the West Bank city of Nablus, the military said.
Security forces entered the city to arrest terror suspects and encountered fire from armed militants when they surrounded a building, calling for suspects to surrender.
Palestinian health officials confirmed at least two militants, Aboud Sobh, 29, and Muhammad Al-Azizi, 22, were killed and nine others were wounded during a three-hour siege on the building.
The Fatah Al-Aqsa Martyrs Brigades militant group claimed the two dead as its members.
Prime Minister Yair Lapid said the suspects had been wanted for a series of shootings. "We won't sit and wait for Israeli citizens to be harmed," he told a meeting of his cabinet. "We will go out and harm the terrorists in their homes."
According to the security forces, they entered the West Bank city to apprehend suspects involved in terror activity and confiscate weapons.
Troops surrounded three buildings where suspects were barricaded and in the battle that ensued fired missiles at one of the structures, destroying it.
Palestinian militants from the area opened fire at the forces from surrounding rooftops in the old city of Nablus.
During searches conducted in the building after the battle ended, troops uncovered weapons and explosive devices.
There were no injuries reported among the security forces, the military said.
At the same time, another force conducted a raid on the village of Qabatia near Jenin, where at least two suspected terrorists were arrested.
The raid was part of continued efforts by the IDF to apprehend terror suspects after the wave of attacks last spring that saw the killing of 19 Israelis.