Eyewitnesses refuted the military allegations.
Israeli soldiers shot dead two Palestinians who had stabbed a soldier Sunday at a West Bank checkpoint, the military said.
The people who brought the 56-year-old man to the hospital said he was shot for no reason, Palestinian Health Ministry spokesman Taref Ashour said.
One Palestinian witness, Suhail Hamed, 39, said the police opened fire when the vehicle was 150 metres (yards) away from them.
Naimi was shot and critically injured following the incident south of the West Bank city of Nablus. One victim was said to be in a moderate condition, while the second was lightly wounded.
Police spokesperson Luba Samri says a driver sped toward Israeli forces who were controlling rioting Palestinian youth in the village of Silwad north of Ramallah on Friday.
“The Israel Police continue to carry out security measures in order to prevent and respond to any terrorist attacks”, he said, adding that no violent incidents have been reported in the Christian Quarter since the holiday began. “The terrorist whipped out a knife and tried to stab a police officer”.
The attack in Hawara was the fifth stabbing or attempted stabbing of the day.
More than 120 Palestinians have died during this period, some during clashes with Israeli security forces, while others were gunned down after allegedly trying to commit attacks against Israelis.
A Palestinian official reportedly said that the proposal to draw up borders was specifically an attempt to prevent the bubbling over of tensions on the Palestinian street.
US-backed peace talks between the Palestinians and Israel collapsed in April 2014 after nine months of fruitless meetings amid bitter recriminations and mutual blame.
Israeli leaders says Islamist groups who call for the destruction of Israel have played a major role in inciting the recent violence.
The latest wave of violence erupted in early October, and has so far claimed the lives of at least 133 Palestinians, 19 Israelis, an American and an Eritrean.