The Israeli military says it's investigating a fire that erupted while soldiers were raiding the offices of a West Bank money changer suspected of funding Palestinian militant groups.

The military says the money changer refused to cooperate and open a safe during the raid on Thursday. Soldiers then opened it by using a "controlled detonation" that caused the fire.

Palestinian security says the blaze spread to nearby shops and offices and damaged 10 of them in a commercial building in the city of Ramallah.

Nael al-Azzeh, spokesman for Palestinian security, said the fire at the Al-Ajouli company was extinguished by Palestinian forces.

The military says the raid was an operation "to confiscate terror funds" but did not elaborate which groups the money exchanger is suspected of funding.