"Mohammed al-Haddad, 17, was killed by a bullet that penetrated his heart," the ministry said in a statement.
According to Israel’s military spokesman's office, soldiers "identified a Palestinian who hurled a Molotov cocktail at them [and] responded with fire in order to remove the threat."
The killing occurred in the Palestinian city of Hebron (Al-Khalil in Arabic), where between 500 and 850 extremist Jewish settlers live in a heavily guarded enclave.
Meanwhile, the Israeli military said it targeted a Hamas weapons manufacturing site in Gaza. The exchange comes amid a rise in cross-border rocket and “explosive balloon” launches from the Hamas-controlled territory.
The Gaza Strip has been relatively calm in recent weeks as part of an informal truce between Hamas and Israel, but tension resurfaced since Trump unveiled his plan.
Al-Haddad’s shooting marks the first death since United States President Donald Trump disclosed last week, in great fanfare, his long-awaited peace plan.
Several protests erupted in the occupied West Bank since then, with demonstrators throwing stones and firebombs at Israeli forces. Palestinians have thoroughly rejected the plan which is heavily pro-Israel.
Under the proposal dubbed “the deal of the century,” Israel would be allowed to annex all Jewish settlements in the West Bank, as well as the strategic Jordan Valley. It would have the entire city of Jerusalem as its capital.
The Palestinians were offered limited self-rule in Gaza, small portions of the West Bank, a village in the outskirts of Jerusalem as a capital, and some desertic areas of Israel, in exchange for complying with a long list of conditions.