Qatari-bought fuel arrived at the Gaza Strip's only power station after entering through Israel on Tuesday in a bid to alleviate conditions in the Palestinian enclave, a Hamas spokesman and sources said.
The army confirmed the death of Mohammed Khatib, 24, in custody but said he had not resisted arrest.
The victim, Ari Fuld, 45, was well-known amongst settlers as a pro-Israel advocate. According to his Twitter account, he had planned a lecture tour in the United States in November.
Footage distributed by the military showed an armoured bulldozer tearing into the one-storey structure in the village of Kaubar, north of the Palestinian city of Ramallah.
Israel's top court on Sunday doubled the prison sentence of a police officer who shot dead a Palestinian teenager in 2014, an incident documented by video footage.
Israeli Army Radio said the rocket was a long-range Grad capable of reaching Israel's heartland and that it hit an open area outside Beersheba.
The teenage attacker snuck into the settlement on Thursday evening, the Israeli army said, stabbing three people before being shot dead.
A Palestinian wounded in May by Israeli fire during deadly clashes on the Gaza border has died of his injuries, the health ministry in the Palestinian enclave said on Tuesday.
A Palestinian has died days after being shot by Israeli forces in clashes along the Gaza border, the enclave's health ministry said Tuesday.
A Palestinian teenager was shot dead Friday by Israeli soldiers during clashes near the Gaza Strip's border with Israel, the territory's health ministry said.