Soldiers later killed two more Palestinians, including a 15-year-old boy.
"This is his response to peace, he will only kill more Palestinians," said the teenager.
In less than two weeks it has killed more than 160 Palestinians.
Israeli soldiers killed at least three Palestinians, who they said were the killers.
But the army spokeswoman said she could confirm only that the police officers had killed two Palestinians.
Troops fired back at his home, killing him and 3 other Palestinians, 2 of them civilians.
Our biggest enemy, the leader who killed so many Palestinians, is dead.
Several have been charged with or convicted of shooting and killing Palestinians without sufficient cause.
Over the past three weeks, the Israeli army has killed 41 Palestinians and wounded 47.
There have been 10 cases of settlers killing Palestinians.