A Palestinian youth shot and seriously wounded three Israelis in an industrial area in the West Bank on Sunday morning in a suspected terror attack, the Israeli police said.

The incident took place in the Barkan Industrial Area in the northern Israeli-occupied West Bank, where Israelis and Palestinians work side by side.

A police spokesperson said in a statement that a 21-year-old Palestinian entered an office on the second floor of one of the factories and opened fire before he fled the area.

Police and military forces launched a manhunt.

As a result of the shooting, a man and a woman in their 30s were "critically injured" and a 54-year-old woman was seriously wounded, the Israeli emergency medical services said.

The police said they investigate if the shooting was nationalistic-motivated or was driven by other reasons. A military spokesperson said in a statement that the "circumstances are being looked into."

The incident came amidst tensions in the Gaza Strip, where Palestinians have been staging daily rallies against the blockade imposed by Israel since 2007, and Israeli forces killed at least 190 people since the protest started on March 30.