On Wednesday morning, a Palestinian man was shot dead by a settler over stabbing claims in Karmei Tzur settlement near Hebron.
Another security guard on duty at the time shot and killed the assailant.
Following Hamza's death, dozens of Palestinian protested in Halhoul, before the soldiers attacked them, and fired dozens of live rounds, rubber-coated steel bullets and gas bombs.
WAFA correspondent said residents of the area where the Zamaareh home is located clashed with the soldiers.
The identity of the dead man did not match that of the suspect given by Israeli authorities as the stabber. Soldiers later found Jarrar and shot him dead in the West Bank village of Yamoun.
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Israeli forces earlier on Tuesday stormed Nablus, provoking Palestinian youths to take to the streets.
Israel's Shin Bet domestic security agency said that "during the attempted arrest, the terrorist came out of a building where he was hiding armed".
"Our heroes in the occupied West Bank wrote a heroic epic that made the Zionists lose sleep and put their security establishment on alert", the al-Qassam Brigades said in a statement.
Tensions have risen since US President Donald Trump's controversial recognition of Jerusalem as Israel's capital on December 6 that sparked a string of stabbing incidents across the region, as well as an uptick in rocket attacks from the Gaza Strip.
Shaath also reported that the Japanese officials, including the Foreign Minister Taro Kono and other MPs, had announced their support for an worldwide peace conference to solve the Israeli-Palestinian conflict based on global resolutions. Two Israelis have been killed in that timeframe.