The official Palestinian news agency Wafa reported that the shooting took place on Friday evening. It also released a video of a windshield riddled with bullet holes.
Local sources said the troops raided the town and opened fire on a vehicle carrying two occupants, killing a teenager and wounding another.
Ahmed Jibril, director of ambulance and emergency services at the Palestine Red Crescent Society (PRCS) in Nablus, stated that Israeli soldiers prevented paramedics from approaching the vehicle, until one of the teens died as he lay bleeding in the car.
The forces apprehended the other occupant and took him away to an unknown location.
The Palestinian Health Ministry identified the fallen Palestinian as 18-year-old Fawzi Hani Makhalafa.
The PRCS paramedics transported the body of the slain teen to Rafidia Surgical Hospital in the city of Nablus, once Israeli army forces allowed them on to the scene.
Earlier on Friday, one teenager, identified by the Palestinian Health Ministry as 17-year-old Muhammad Fouad Atta al-Bayed, was shot in the head by Israeli forces in the village of Umm Safa, which neighbors Ramallah.
Wafa reported that the boy, a resident of the Jalazone refugee camp north of Ramallah, was taken to the Istishari Arab Hospital before dying of his wounds.
It added that Israeli forces had fired live ammunition, tear gas and stun grenades during confrontations with local residents.
Tensions have been high across the occupied West Bank for the past year and a half, with the Israeli military carrying out near-nightly raids and the Palestinians carrying out retaliatory attacks.
At least 200 Palestinians have been killed by Israel since the beginning of this year.