Israel’s military said a car was speeding toward soldiers when one of them opened fire. The baby’s grandmother, who said she was in the car, disputed that account.
Mahmoud Abbas’s years in power have been dogged by accusations of corruption. Many Palestinians yearn for fresh leadership.
A child was among the dead, according to the Palestinian health ministry. The Israeli military said it had attempted to break up clashes in Al Mughayir, which has seen a surge of Israeli settler violence.
Several others were injured in the strike, which hit a caravan being used as a hair salon in the town of Beit Awwa, according to Palestinian officials.
The security cabinet took actions that make it easier for Jews to buy land in the territory. Critics say the changes violate the Oslo Accords and international law and accelerate attempts to annex the land.