Israel's Defense Minister Yoav Gallant gave instructions to withdraw the work permits from the family of the Palestinian who carried out the shooting attack at a junction near Hebron on Monday.
Gallant said that his staff are working with "all available means to thwart the attacks," pointing to thousands of work that have been rescinded since he took office.
The shooting attack on Monday saw one female settler killed and another wounded in a junction between Hebron and Yatta in the occupied West Bank.
The manhunt for the shooter is still underway, and Israel has ramped up its forces and closed roads in the area in a bid to capture the perpetrator.
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Gallant to rescind work permits of Palestinian shooter's family