The Israeli government and the Palestinian Authority have announced a joint commitment to take immediate action to put an end to the uptick in violence.
The decision resulted from rare talks in Jordan, which were also attended by US and Egyptian officials.
The meeting agreed to support confidence-building steps and “to work towards a just and lasting peace”.
During the talks, a Palestinian gunman killed two Israelis in the occupied West Bank.
The Israeli government called the killings “a Palestinian terror attack,” and the Israeli military said it was looking for the gunman.
The summit in Aqaba, on the Red Sea, was called in response to a recent spike in deadly violence, which has fueled fears of a wider conflict.
For the first time in many years, it brought together Israeli and Palestinian security chiefs. Brett McGurk, the US president’s top Middle East adviser, was also present.
“The two sides [Palestinian and Israeli] affirmed their commitment to all previous agreements between them, and to work towards a just and lasting peace,” the summit communique stated.
“They reaffirmed the importance of committing to ground de-escalation and preventing further violence.”
According to the statement, Israel agreed to halt discussions about new settlement construction for four months. In exchange, it is understood that the Palestinians will not take UN action against Israel.
US National Security Adviser Jake Sullivan said he “welcomed” the commitments made by both sides, adding that more work is needed in coming months “to build a stable and prosperous future for Israelis and Palestinians alike”.