Israeli settlers have set dozens of Palestinian homes and cars on fire in Huwara, a town in the occupied West Bank city of Nablus, in what appeared to be the worst outburst of settler violence in decades.

Palestinian media said some 30 homes and cars were torched during the late-night rampage by the settlers, which came a day after two settlers were killed. Earlier this month, 11 Palestinians were killed in an Israeli military raid in Nablus.

The Palestinian health ministry said a 37-year-old man was shot and killed by Israeli fire on Sunday. The Palestinian Red Crescent said two others were shot and wounded, a third person was stabbed and a fourth was beaten with an iron bar.

Some 95 others were being treated for tear gas inhalation.

Ghassan Douglas, a Palestinian official who monitors Israeli settlements in the Nablus region, estimated about 400 Jewish settlers took part in the attack, which came after the Jordanian government said the Palestinian Authority (PA) and Israeli officials agreed to take steps to de-escalate the situation.

Tensions have escalated between Palestinians and Israelis amid intensified deadly raids in occupied territories.

Palestinian President Mahmoud Abbas condemned what he called “the terrorist acts carried out by settlers under the protection of the occupation forces tonight”.

“We hold the Israeli government fully responsible,” he added.

Israeli Prime Minister Benjamin Netanyahu appealed for calm and urged against vigilante violence.

“I ask that when blood is boiling and the spirit is hot, don’t take the law into your hands,” Netanyahu said in a video statement.

The European Union said it was “alarmed” by the violence in Huwara and that “authorities on all sides must intervene now to stop this endless cycle of violence”.