The situation in Qusra began on Sunday when settlers blocked the road to the Palestinian families' gates and cut off their power and water supplies.
The first Israeli soldiers who came to the site prayed with the settlers – an act for which the Israeli military said they would be disciplined.
An attempt by Israeli security forces to dislodge the settlers on Wednesday led to confrontations with a bigger group.
Palestinian security camera video shared with the BBC showed confrontations between Israeli soldiers and border police and a large crowd of settlers. The security forces used tear gas and stun grenades.
It is not clear exactly what the settlers in Qusra want. In the past, settlers have forced Palestinians out of their homes and seized their properties.
Their stated aim is to empty the area of its Palestinian residents.
Settlements are illegal under international law, but the Israeli government has promoted their recent rapid expansion.
The case is the latest to draw attention to the relative impunity of settlers and how Israeli forces are struggling to deal with rising settler violence.
Since January 2023, 127 Palestinian communities in the occupied West Bank have experienced full or partial displacement, including 47 that have been entirely displaced, affecting more than 6,390 Palestinians, the UN says.
It has registered that in 2026, about 3,800 Palestinians have been displaced due to settler violence, demolitions and evictions - nearly half of them children.