This is a terrorist attack. The police are a civilian (ie, non-military) force, meant to keep the peace. These officers operate in Area C, which, according to the Oslo accords, Israel is in charge of security. That is, both Israel and the PA agree that Israel is in charge of security in this area. They stopped to help the local Arab driver, who seemed to be having car trouble (see other reports). He was faking it, and the attack ensued. This attack is an indirect result of easing restrictions on the movement of Yesha Arabs.
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from the article: Police officer killed and two wounded in West Bank shooting