The war, now in its seventh month, has killed more than 34,000 Palestinians, according to Gaza health authorities
The violence erupted at a protest against Israeli settlements near the city of Ramallah.
Witnesses said a crowd of young Palestinians hurled stones at Israeli forces, who in turn opened fire.
A 17-year Palestinian was shot and later died of his wounds, the Health Ministry said.
The Israeli army had no immediate comment on the incident.