The US imposed sanctions on Israel's Hilltop Youth movement and two individuals for violence against Palestinians, aiming to curb escalating West Bank tensions.
Around 20 people, including masked and armed men, began chasing the fleeing women and children.
The reported attack was said to have been carried out on Palestinian civilians in Bethlehem.
Unchecked violence by extremist settlers threatens to undermine Israel’s international legitimacy and could lead to increased global isolation
Zvi Sukkot, who participated in the Sde Teiman riots, called settler violence a marginal phenomenon compared to Palestinian terrorism in the West Bank.
In the wake of violent attacks in Samaria, Israeli leaders condemn the actions of rogue civilians. As Israel faces global scrutiny, the need for accountability and justice becomes paramount.
The IDF is investigating its forces' response to violent settler riots in the West Bank village of Jit, as international criticism mounts. The White House has condemned the attacks.
Israeli leaders must unequivocally clarify that the state does not support racism or violence of any kind, and must work toward promoting equality and dialogue.
Security establishment figures said this was a serious escalation of "right-wing activism" in the West Bank.
Foreign Minister Katz said on Wednesday during a meeting with Judea and Samaria heads that there was "no such thing as settler violence."