Palestinian Preventive Security officials prevented an IDF force from entering Jenin on Sunday.
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Several soldiers from the paratroopers brigade apparently took a wrong road to the area, arriving at Jenin at a different entrance than planned.
There were no casualties in the incident.
An initial investigation showed the two military vehicles arrived via a road that wasn't coordinated with Palestinian security and this may be the reason why access to the city was denied.
Gunfire can be heard on video documenting the incident, but the shooting was apparently done with the intent of keeping other Palestinians away from the site.
The IDF is inquiring the incident.
Palestinian security sources in Jenin said the Israeli force took a main, crowded traffic artery in town without coordination, therefore it was decided not to permit them to do so.
Israel generally coordinates the entry of IDF forces into Area A, or Palestinian cities in the West Bank under Palestinian Authority administration, in order to avert friction.
Palestinian Authority sources were critical that an incident of this kind could have exploded into an unnecessary confrontation that would have put Palestinain police at risk if they would have had to push back an angry crowd away from incoming Israeli soldiers.
Jenin, a city at the northern edge of the West Bank, was the scene of one of Israel's bloodiest conflicts with the Palestinians during the second intifada, where a few dozen civilians and militants were killed during a monthlong IDF Defensive Shield campaign in 2002.
The campaign was launched after one of the worst Palestinian suicide bombings, an attack at the site of a Passover seder that killed and wounded dozens at a Netanya hotel.