Medics said a woman of around 25 died in the attack on a road outside Alon Shvut in the Etzion settlement bloc in the southern West Bank.
It was today's second such stabbing incident and came several hours after a Palestinian teenager attacked an Israeli soldier with a knife in Tel Aviv, leaving him in critical condition.
"Paramedics confirmed the death of a young woman," the emergency services said of the incident at a bus stop near the western entrance to the settlement.
"A car stopped at the hitchhiking stop at the entrance to Alon Shvut, the driver got out of the car and stabbed three civilians who were standing there," police spokeswoman Luba Samri said.
"The guard at the entrance shot the suspect," she said.
Medics confirmed evacuating a man with serious gunshot wounds who was taken to a Jerusalem hospital, but he died shortly afterwards from his injuries, police said.
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