"The rioters hurled large rocks and firebombs and rolled burning tyres at troops, who responded with riot dispersal means", an Israeli army statement said.
He was stabbed and lightly injured during the incident, and on Friday morning it was announced he had been released from hospital.
He wounded two other Israelis before being shot dead.
Israeli army spokesman Jonathan Conricus said that around 8.50PM local time the assailant jumped over the fence that surrounded the settlement and stabbed two passers-by.
The 17-year old attacker was shot dead by one of the three men he attacked, but not before he had killed Yotam Ovadia, 31, and injured another man aged 58, who was taken to hospital and later described as being in a "serious but stable" condition.
Some 300 Palestinians - a lot of them assailants, Israel says - have also been killed in that period, according to news agencies.More news: Israel intercepts rockets from Syria
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"The best answer to terror is the momentum of settlement in Judea and Samaria", Lieberman tweeted. Israel rejects the widely held view that settlement expansion is one of the greatest obstacles to peace with the Palestinians. Eyewitnesses in Adam reported seeing a suspicious vehicle leaving the settlement shortly after the attack.
"The continued Israeli attacks against occupied Jerusalem will increase tensions and will drag the region into a religious war that we have long warned against", Palestinian President Mahmoud Abbas's office said in a statement.
The Israeli military says it has shelled militant targets in the Gaza Strip after its troops on the border came under fire.
The last stabbing attack in a West Bank settlement was in April 2018, when a Palestinian tried to stab an Israeli with a screwdriver near a gas station in an industrial area connected to the Maale Adumim settlement east of Jerusalem.
Hamas, the Islamist group that rules the Palestinian Gaza Strip, praised the attack.
"The West Bank is ready and able to avenge the blood of the martyrs", it said.
The three men were killed on Wednesday by Israeli artillery fire targeting a Hamas military base near the border east of Gaza City.