Palestinian media have identified the assailants behind the West Bank stabbing attack as Hussien Abu Roash from the Qalandiyah refugee camp, and Ibrahim Alaan from the adjacent village of Beit Ghur al-Tahta.
Israeli security forces surrounded Monday the West Bank town of Beit Ghur al-Tahta, where authorities say the two perpetrators of an earlier stabbing attack set out from.
Only those who required medical attention were being allowed to exit the town.
In wake of the attack, President Reuven Rivlin said his "thoughts and prayers are with those wounded and fighting for their lives after the severe terror attack at Beit Horon. These difficult times are fraught with confrontation and we will overcome. We will continue to fight against terrorism and the incitement which drives it. In the face of terror, we choose life."
The woman wounded in the stabbing attack is now in critical condition, paramedics say.
The two people identified by the police as the assailants behind the stabbing attack have been killed, police said. An initial investigation claimed that the two were shot by a local security guard after entering the settlement and stabbing two, wounding one seriously.
An initial investigation into the attack suggested that two assailants arrived at Beit Horon's grocery shop and began stabbing a woman. They then fled, attempting to stab another person, lightly wounding them, but were then shot by a security guard.
The woman sustained serious injuries after being stabbed in the chest, and the other victim suffered light wounds. MDA paramedics took her to a hospital.
The settlement has been scene to additional attacks in the past. In August, a Palestinian stabbed an Israeli soldier on Route 443 near Beit Horon.
Two women were wounded in a stabbing attack in the West Bank's Beit Horon, with one suffering serious wounds and the other moderate.
Initial reports say a stabbing has taken place at the entrance to the West Bank settlement of Beit Horon, near Jerusalem.