Violence in the West Bank has surged since the start of the Gaza war sparked by Hamas's attack on southern Israel on October 7, 2023.
The Ezzedine Al-Qassam Brigades, Hamas's armed wing, claimed responsibility for the attack, which left more than a dozen bullet holes in the windshield of the bus.
The attack occurred at an intersection close to the settlement of Ariel, the Israeli military said in a statement.
It added that a "terrorist was neutralised on the spot".
Four people suffered bullet wounds, three of them serious, and four others were lightly injured by shards of glass, according to the Magen David Adom rescue service.
Three of the injured were lying near the bus, conscious, when the rescuers arrived, a spokesman for MDA said, adding that those most seriously hurt were taken to hospital in a "stable condition".
At least 24 Israelis, including soldiers, have been killed in Palestinian attacks or during military operations in the West Bank since the Gaza war began, Israeli official figures show.
During the same period, at least 778 Palestinians have been killed in the territory by Israeli troops or settlers, according to an AFP count based on Palestinian official figures.
All of Israel's settlements in the West Bank, occupied since 1967, are considered illegal under international law.
