A gunman (circled in red) appears to approach a group of IDF soldiers and civilian guards at an East Jerusalem checkpoint on Saturday (Screengrab)
Video from the fatal incident shows two soldiers collapse to the ground as the gunman opened fire, while others dive for cover.
An initial investigation into the incident found that the shooter had fired eight bullets towards a group of soldiers at the checkpoint, and none of them were able to fire back and hit him, according to the Ynet news site.
It also found that the shooting took place as soldiers were changing shifts, which is considered a particularly vulnerable time at a checkpoint and requires additional security measures.
According to Ynet, some of the commanders on the scene could be dismissed as a result of this attack.
Meanwhile, Israel's security, law enforcement, and intelligence apparatus has launched a major manhunt for the shooter, who they believe was able to slip into the Shuafat refugee camp after the attack, according to police.
ABOVE: Clashes with Israeli security forces in the Shuafat refugee camp on Sunday
According to Hebrew-language media, a 22-year-old resident of the Shuafat refugee camp in East Jerusalem was responsible for the shooting.
Four people suspected of assisting in the attack were arrested overnight on Saturday-Sunday, and will stay in custody until at least 16 October as the investigation continues, Israeli Police said in a statement on Sunday.
Hebrew media also reports that the suspect's parents have been detained, and that his brother turned himself in to police for questioning, along with the driver of the vehicle used in the attack.
According to Haaretz, the driver and three other passengers in the vehicle denied any knowledge of what the shooter intended to do.
ABOVE: UK Ambassador to Israel condemns the "unjustifiable" attack
Israeli forces are continuing their manhunt in East Jerusalem, and clashes were reported between the troops and dozens of Palestinians, who threw fireworks and rocks, according to police and footage from the area. Special forces were deployed for riot control.
On Sunday, Public Security Minister Omer Barlev told the Kan public broadcaster: “The refugee camp is completely surrounded… It may take hours, days, but we’ll catch him."
“This isn’t the first time that we see terrorists coming from East Jerusalem. This is a very difficult situation.”
In a statement on Sunday, Prime Minister Yair Lapid said: "On my behalf and on behalf of the Government of Israel, I send condolences to her family and friends: there are no words that can ease this terrible loss.
"We will not rest until we bring these heinous murderers to justice."
Meanwhile, tensions are high in the West Bank amid an increase in violence in recent months. Two Palestinian teenagers were reportedly shot dead in an Israeli raid in the West Bank as Israel continues counterterrorism operations.
Public Security Minister Omer Barlev said that Israel is “doing the maximum to avoid a military campaign in the West Bank,” but added that the recent flareup in tensions may force Israel to take action.
He said: “We’re nearing a military operation. We’re not there yet. We need to continue examining the situation and to make decisions accordingly."
