Israel is set to approve construction of Jewish settler homes in a flashpoint area of the West Bank city of Hebron for the first time since 2002, the anti-occupation group Peace Now said Tuesday.

A Palestinian was shot dead by Israeli army fire in the occupied West Bank late Sunday, the Palestinian health ministry announced.

A Palestinian wounded in clashes with Israeli troops in the West Bank town of Jenin has died of his injuries, bringing to two the number killed on Thursday, the Palestinian health ministry said.

Palestinian leader Mahmud Abbas on Saturday announced a cut in all ties with Israel and the United States, including security cooperation.

A Palestinian woman brandishing a knife at the Qalandia checkpoint between Jerusalem and the northern West Bank was shot dead by Israeli security forces Wednesday, police and medical sources said.

The Israeli army troops shot dead four Palestinians on the Gaza border early Saturday, one of whom had managed to cross and throw a hand grenade at troops.

Palestinian leaders in Gaza agreed a ceasefire with Israel on Monday to end a deadly two-day escalation in violence that threatened to widen into war, officials with knowledge of the deal said.

An Israeli military spokeswoman declined to comment on the deal, but there appeared to have been no rocket fire or Israeli strikes after it was due to take effect, an AFP correspondent in Gaza said.

Israel reduced the offshore fishing limit it imposes for vessels operating out of Gaza from Tuesday following rocket fire from the territory by Palestinian militants, officials said.

The new Palestinian prime minister on Tuesday accused the United States of declaring "financial war" on his people and said an American peace plan purported to be in the works will be "born dead."

In his first interview with international media since taking office over the weekend, Mohammad Shtayyeh laid out plans to get through the financial crisis he has inherited and predicted that the international community, including U.S. allies in the Arab world, would join the Palestinians in rejecting President Donald Trump's expected peace plan.

Israeli Prime Minister Benjamin Netanyahu has pledged to annex settlements in the occupied West Bank if he wins the upcoming general election.