An Israeli gunman opened fire on Palestinians in the West Bank Wednesday, killing three and wounding at least two others, FOX News has confirmed.

The gunman was arrested after the shooting on the outskirts of the Shiloh settlement (search).

Initial reports said two people had been killed, but Israeli rescue services told FOX News a third person had died.

The Israeli military had no comment for the Associated Press.

The Israeli newspaper Haaretz reported that the man snatched a gun from a security guard in the settlement's industrial zone.

"It appears that an Israeli who resides locally grabbed a gun from a security man at the Shiloh industrial zone and opened fire on Palestinians, who may have been workers or passersby," an Israeli security source told Haaretz.

Haaretz named the gunman as Asher Weisgan, a 38-year-old driver from the settlement of Shvut Rahel (search), north of the Palestinian city of Ramallah (search) in the West Bank.

Weisgan apparently asked a security guard for a cup of water, then grabbed the guard's gun. He shot the two Arab men he had just been driving, then ran into the industrial zone, killing another man and wounding two others.

The two wounded men were taken to Hadassah University Hospital (search) in Jerusalem.

The incident took place as Israeli soldiers and police moved into Gaza Strip settlements to remove opponents to the Israeli pullout.

Last week, an Israeli army deserter opened fire on a crowded bus in predominantly Arab northern Israel, killing four Israeli Arabs before being beaten to death by a mob.

The Associated Press contributed to this report.