A Palestinian has been seriously wounded in a clash with Israeli troops that erupted near the West Bank city of Hebron, the military says.

The army said the clash involved 150 Palestinian demonstrators who were throwing rocks and Molotov cocktails at Israeli soldiers.

The Palestinian was wounded after troops opened fire on the demonstrators, following earlier attempts to disperse the crowd using tear gas and rubber bullets that failed.

The clash comes amid mounting tensions between Israel and the Palestinians spawned by conflicting claims to a Jerusalem holy site and the aftermath of this summer's Gaza war.

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