Sky News Middle East correspondent Ali Bunkall said it’s believed the victims of the attack moved to Israel around 2005.
The sisters’ mother was airlifted to hospital in a “very critical condition”, he added.
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Pictures from the scene in the Jordan Valley show several cars badly damaged on the side of the road.
Their father was behind in another car when the attack happened, according to Oded Revivi, the mayor of a settlement near Bethlehem where they lived.
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0:30
Clashes at Al Aqsa mosque
Bunkall said the targeting of cars with Israeli number plates in the West Bank had become “far more commonplace in the last few weeks”.
Israeli Prime Minister Benjamin Netanyahu and defence Minister Yoav Gallant visited the site of the shooting late on Friday.
“It’s just a matter of time, and not much time, until we settle the score,” Mr Netanyahu said.
Road blocks have been set up to try to find the attackers.
No group has claimed responsibility, but a Hamas spokesman hailed the attack as “retaliation for the crimes committed by Israel in the West Bank and the Al-Aqsa mosque”.
A UK Foreign Office spokesperson said in a statement: “We are saddened to hear about the deaths of two British-Israeli citizens and the serious injuries sustained by a third individual.
“The UK calls for all parties across the region to de-escalate tensions’
Tension on the streets as religious festivals coincide
Jerusalem has been calm today, but you can feel the tensions on the streets. Israeli security officials have bolstered numbers, especially in the Old City.
This weekend sees the convergence of Ramadan, Passover and Easter – the internal intelligence agencies had marked it as being a potential flashpoint.
The salvo of missiles from southern Lebanon into northern Israel yesterday afternoon came as a surprise. For a few hours, it had the potential to be a major escalation.
Not since 2006 has such an attack happened on Israel but the airstrikes overnight were carefully calibrated to avoid further violence.
Israeli forces hit the launch sites and in areas not controlled by Hezbollah.
Likewise, the simultaneous strikes in Gaza attacked known Hamas military posts but didn’t cause casualties.
Having said that, it wouldn’t take much to spark more violence. In previous years, violence has often escalated in the second half of Ramadan.
Jews, and other religions, are prevented from entering Al Aqsa between Friday and Sunday. When the compound opens up again, it might be a moment for more clashes.
The killing of two young British sisters in the West Bank is the latest tragedy in a new trend of Palestinian militant violence.
Cars with Israeli number plates have been increasingly targeted, sometimes fatally, as was the case in this incident.
Hamas, and Gaza, is a known quantity – you can read the signs and it often follows a pattern.
What is harder to predict are acts by unaffiliated Palestinians acting alone and how that might light the flame under this tinderbox.
The clashes at Jerusalem’s Al Aqsa compound came at the start of the Jewish festival of Passover, which this year crosses over with Ramadan.
The site is extremely sacred to both Muslims and Jews and tensions over access and control often spill over into violence.
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0:42
Israel strikes targets in Lebanon and Gaza
Image: Israel’s Iron Dome anti-missile system intercepted many of the rockets
Israel’s Friday morning airstrikes hit different areas of Gaza, including tunnels and weapons-making sites of Hamas – the group that controls the blockaded coastal strip.
Hamas targets in southern Lebanonwere also attacked, according to Israel’s military.
There were no reports of serious injuries following the Israeli strikes, but the Palestinian Health Ministry said a children’s hospital in Gaza had been damaged.
Israel said its retaliation followed 34 rockets fired from Lebanon on Thursday – one of the heaviest such attacks since its 2006 war with Hezbollah.
Authorities said 25 of the rockets fired at Israel were intercepted by air defences.
Most of those that made it into Israeli territory hit open areas, but a house was hit by shrapnel when one landed in the town of Sderot.
But there are fears they will discuss a deal robbing Ukraine of the land currently occupied by Russia – something Volodymyr Zelenskyy has said he won’t accept.
Here’s what three of our correspondents think ahead of the much-anticipated face-to-face.
Putin’s legacy is at stake – he’ll want territory and more By Ivor Bennett, Moscow correspondent
Putin doesn’t just want victory. He needs it.
Three and a half years after he ordered the invasion of Ukraine, this war has to end in a visible win for the Russian president. It can’t have been for nothing. His legacy is at stake.
So the only deal I think he’ll be willing to accept at Friday’s summit is one that secures Moscow’s goals.
These include territory (full control of the four Ukrainian regions which Russia has already claimed), permanent neutrality for Kyiv and limits on its armed forces.
I expect he’ll be trying to convince Trump that such a deal is the quickest path to peace. The only alternative, in Russia’s eyes, is an outright triumph on the battlefield.
Image: Vladimir Putin and Donald Trump meeting in Osaka in 2019
I think Putin‘s hope is that the American president agrees with this view and then gives Ukraine a choice: accept our terms or go it alone without US support.
A deal like that might not be possible this week, but it may be in the future if Putin can give Trump something in return.
That’s why there’s been lots of talk from Moscow this week about all the lucrative business deals that can come from better US-Russia relations.
The Kremlin will want to use this opportunity to remind the White House of what else it can offer, apart from an end to the fighting.
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4:25
What will Kyiv be asked to give up?
Ukraine would rather this summit not be happening By Dominic Waghorn, international affairs editor
Ukraine would far rather this meeting wasn’t happening.
Trump seemed to have lost patience with Putin and was about to hit Russia with more severe sanctions until he was distracted by the Russian leader’s suggestion that they meet.
Ukrainians say the Alaska summit rewards Putin by putting him back on the world stage.
But the meeting is happening, and they have to be realistic.
Most of all, they want a ceasefire before any negotiations can happen. Then they want the promise of security guarantees.
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2:35
Does Europe have any power over Ukraine’s future?
That is because they know that Putin may well come back for more even if peace does break out. They need to be able to defend themselves should that happen.
And they want the promise of reparations to rebuild their country, devastated by Putin’s wanton, unprovoked act of aggression.
There are billions of Russian roubles and assets frozen across the West. They want them released and sent their way.
What they fear is Trump being hoodwinked by Putin with the lure of profit from US-Russian relations being restored, regardless of Ukraine’s fate.
Image: US Army paratroopers train at the military base where discussions will take place. File pic: Reuters
That would allow Russia to regain its strength, rearm and prepare for another round of fighting in a few years’ time.
Trump and his golf buddy-turned-negotiator Steve Witkoff appear to believe Putin might be satisfied with keeping some of the land he has taken by force.
Putin says he wants much more than that. He wants Ukraine to cease to exist as a country separate from Russia.
Any agreement short of that is only likely to be temporary.
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1:41
Zelenskyy: I told Trump ‘Putin is bluffing’
Trump’s pride on the line – he has a reputation to restore By Martha Kelner, US correspondent
As with anything Donald Trump does, he already has a picture in his mind.
The image of Trump shaking hands with the ultimate strongman leader, Vladimir Putin, on US soil calls to his vanity and love of an attention-grabbing moment.
There is also pride at stake.
Image: Joint Base Elmendorf-Richardson in Alaska, where Trump will meet his Russian counterpart. File pic: Reuters
Trump campaigned saying he would end the Russia-Ukraine war on his first day in office, so there is an element of him wanting to follow through on that promise to voters, even though it’s taken him 200-plus days in office and all he’s got so far is this meeting, without apparently any concessions on Putin’s end.
In Trump’s mind – and in the minds of many of his supporters – he is the master negotiator, the chief dealmaker, and he wants to bolster that reputation.
He is keen to further the notion that he negotiates in a different, more straightforward way than his predecessors and that it is paying dividends.
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Mr Trump floated the idea of a second meeting, this one between Putin, Zelenskyy and possibly himself, “if” the Alaska summit goes well.
Speaking to European leaders earlier, in a virtual call he rated at “10” and “very friendly”, he’d shared his intention to try to broker a ceasefire on Friday.
So, the strategy is crystallising – he will press for a trilateral meeting to discuss territory “if” he manages to secure a truce during the bilateral meeting.
But that begs the obvious question: what if he can’t?
The US president is keeping his options open – rating the chance of a second meeting as “very good” but preparing the ground for failure too.
“There may be no second meeting because if I feel that it is not appropriate to have it because I didn’t get the answers that we have to have, then we’re not going to have a second meeting,” he said.
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Unusually, given how often he talks about his abilities, he conceded that he may not persuade Vladimir Putin to stop targeting civilians.
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4:25
Sky’s defence analyst, Prof Michael Clarke, looks at what land Ukraine might be asked to give up when Donald Trump meets Vladimir Putin on Friday in Alaska.
But without elaborating on what any sanctions might be, he warned that Russia would face “very severe consequences” if it doesn’t end the war.
Even if he achieves the seemingly impossible – a halt to the fighting – there seems little chance of agreement on any swapping of territory.
Image: A BTR-4 armoured personnel carrier during military exercises in Kharkiv region.
Mr Zelenskyy has told Mr Trump that Putin “is bluffing” and wants to “push forward along the whole front” not return land.
In the space of a week, Donald Trump has gone from talking about a land-swapping deal, to a “listening exercise”, to the potential for a ceasefire.
His expectations appear changeable, an indication of how fluid back-room negotiations are in the run-up to his first face-to-face with Vladimir Putin in six years.
He described Friday’s summit as “setting the table for a second meeting”, but that’s presumptuous when the meal – or deal – isn’t cooked yet.
More than 100 people have been killed in Gaza within 24 hours, officials there have said – the deadliest day recorded in a week.
The Gaza health ministry said 123 people were killed, adding to the tens of thousands of fatalities during the near two-year war raging in the Strip.
It comes as officials said Israel’s planned re-seizure of Gaza City, which it took in the early days of the war before withdrawing, is likely weeks away.
Image: Palestinians shelter at a tent camp on a beach amid summer heat in Gaza City. Pic: Reuters/Mahmoud Issa
Eastern areas of Gaza City were bombed heavily by Israeli planes and tanks, according to residents, who said that many homes were destroyed in the Zeitoun and Shejaia neighbourhoods overnight.
Al-Ahli hospital said 12 people were killed in an airstrike on a house in Zeitoun.
Israeli tanks also destroyed several homes in the southern Gaza city of Khan Younis, Palestinian medics said.
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2:17
Netanyahu vows to ‘finish the job’ in Gaza
They added that in central Gaza, Israeli gunfire killed nine people seeking aid in two separate incidents. The Israel Defence Forces (IDF) did not comment on this.
The number of Palestinians who died of starvation and malnutrition in Gaza has risen to 235, including 106 children, since the war began, following the death of eight more people, including three children, in the past 24 hours, the Gaza health ministry said.
Image: Palestinians scramble to collect aid from trucks that entered through Israel, in Khan Younis. Pic: Reuters
The malnutrition and hunger death figures have been reported by the Hamas-run ministry and have been disputed by Israel.
Israeli Prime Minister Benjamin Netanyahu said on Sunday: “If we had a starvation policy, no one in Gaza would have survived after two years of war.”
He also repeated the allegation that Hamas has been looting aid trucks and claimed uncollected food has been “rotting” at the border, blaming the UN for not distributing it.
Image: Aid packages being dropped from a plane in Deir Al-Balah. Pic: Reuters
Image: A Palestinian boy jumps over wastewater in Gaza City. Pic: Reuters
The latest death figures come as Hamas held further talks with Egyptian mediators in Cairo with a focus on stopping the war, delivering aid and “enduring the suffering of our people in Gaza”, an official for the group said in a statement.
Egyptian security sources said the possibility of a comprehensive ceasefire would also be discussed.
This would see Hamas relinquish governance in Gaza and concede its weapons, with a Hamas official saying the group was open to all ideas as long as Israel would end the war and pull out of Gaza.
But the official added that “laying down arms before the occupation is dismissed as impossible”.
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Meanwhile, Mr Netanyahu reiterated that Palestinians should simply leave Gaza, an idea which has also been enthusiastically floated by US President Donald Trump.
“They’re not being pushed out, they’ll be allowed to exit,” Mr Netanyahu told Israeli television channel i24NEWS. “All those who are concerned for the Palestinians and say they want to help the Palestinians should open their gates and stop lecturing us.”
World leaders have rejected the idea of displacing the Gaza population, and Mr Netanyahu’s plan to expand military control over Gaza, which Israeli sources said could be launched in October, has increased global outcry over the widespread devastation, displacement and hunger in the enclave.
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0:59
‘See with your eyes the reality’
The humanitarian crisis in Gaza is at “unimaginable levels”, Britain and 26 partners said in a statement on Tuesday, warning: “Famine is unfolding before our eyes.”
The statement added: “Urgent action is needed now to halt and reverse starvation. Humanitarian space must be protected, and aid should never be politicised.”
It was signed by the foreign ministers of Australia, Belgium, Canada, Cyprus, Denmark, Estonia, Finland, France, Greece, Iceland, Ireland, Japan, Lithuania, Luxembourg, Malta, the Netherlands, Norway, Portugal, Slovakia, Slovenia, Spain, Sweden, Switzerland and the UK.
The war in Gaza began on 7 October 2023 when Hamas killed about 1,200 people – mostly civilians – and abducted 251 others in its attack.
Most of the hostages have been released in ceasefires or other deals. It is believed Hamas is still holding 50 captives, with 20 believed to be alive.
Israel’s retaliatory offensive has killed more than 61,000 Palestinians, according to Gaza’s Hamas-run health ministry, which does not differentiate between militants and civilians in its count.