Residents of Efrat and Gush Etzion gathered with Israeli flags along the roads where the funeral procession passed.
The suspected terrorist was shot at the scene and police are investigating the incident.
The Federation of Local Authorities declared a strike in Israel after mass protests broke out in response to Netanyahu firing Defense Minister Yoav Gallant.
On the 74th anniversary of the release of the POWs by Jordan, a garden was dedicated in their memory.