UN High Commissioner for Human Rights said on Wednesday that the latest flare-up in the situation was "dangerous in the extreme".
If not stopped immediately, it will "draw us ever closer to a catastrophe," he said.
In the latest violence, a Palestinian man was shot dead in the city of Hebron on Thursday after allegedly stabbing an Israeli soldier, Al Jazeera reported.
Palestinian sources, however, said that they believe the Palestinian, in his 20s, had passed through a checkpoint and walked 50 meters before being shot.
Clashes between protesters and Israeli forces broke out after the incident in Hebron, where tension between Palestinians and Israeli settlers is high. About 20 Palestinians have been killed in the city this month after allegedly attacking Israelis - a narrative that in many incidents has been disputed by Palestinians.
Clashes between Israeli forces and Palestinians were triggered last month by Israeli incursions into Al-Aqsa Mosque compound, the third holiest site for Muslims.
Israeli forces have responded harshly to the growing unrest, using live ammunition, rubber-coated steel bullets, tear gas and sound grenades.
Since October 1, Israeli forces and settlers have killed 65 Palestinians - including unarmed protesters, bystanders and alleged attackers - across the occupied lands.