A statement said the “terrorists” got out of a car at a checkpoint for Maale Adumim and fired automatic weapons at several vehicles waiting there.
Police killed two attackers while the third was wounded and arrested.
There was no immediate claim from any Palestinian armed group.
There has been a surge in violence in the West Bank since the start of the war in the Gaza Strip, triggered by Hamas’s deadly attacks in Israel on 7 October.
Thursday’s shooting comes six days after a Palestinian man shot and killed two people at a bus stop near the southern Israeli town of Kiryat Malakhi.