"Our guys rest on Saturday, their guys rest on Friday", said one Israeli official, referring to the Islamic holy day on Fridays.
Two Israeli policemen were wounded in a gun battle in which one of the terrorists who murdered Rabbi Raziel Shevach was eliminated.
But on Thursday, Jarrar's family issued a statement that their son was alive, and the Palestinian Health Ministry later corrected itself to say that Ahmad Ismail Muhammad Jarrar, 31, was the slain Palestinian.
The Israeli military said Palestinians hurled improvised explosive devices, cement blocks and rocks at troops who fired tear gas, rubber bullets and live fire.
An Israeli army spokesman did not return multiple requests for comment.
Israeli special forces surrounded the house which belonged to the late leader of the al-Qassam Brigades, Sheikh Nasser Jarrar, and armed clashes took place with at least one person inside the targeted house. Palestinian security forces told local news agency Maan that six people were wounded in the aftermath of the demolitions, as hundreds of Palestinian men confronted Israeli forces.
Arab media sources report the terrorist was killed in a shootout.
Eighteen Palestinians have been killed since Trump's declaration, majority in clashes with Israeli forces.
Tensions in the region have increased in recent weeks after US President Donald Trump's controversial decision to name Jerusalem as Israel's capital.
It was also met with widespread global condemnation, including by many U.S. allies. Spokesman Sami Abu Zuhri warned that the "Jenin cell is not the first and will not be the last".
Israeli forces killed a Palestinian gunman and captured another in a clash in the occupied West Bank on Thursday, saying they were part of an Islamist Hamas cell responsible for an ambush in which a Jewish settler was shot dead.