The IDF would not release the suspect's name, but said he was from the northern West Bank village of Shuweika, near Tulkarem.
Several Palestinians have been arrested for questioning.
The Israeli authorities have ratcheted up security measures on Palestinian laborers who work at the Barkan settlement in the occupied West Bank.
Inside, he tied up and shot dead Yehezkel and Hajbi at close range, as well as wounding the third victim, according to eyewitnesses.
The woman, 54, was taken to hospital, where her condition was stabilised.
Meanwhile, Israeli forces rounded up seven Palestinians in overnight raids across the West Bank.
"This was not only an attack on innocent people going about their daily lives, it was also an attack on the possibility of Israelis and Palestinians coexisting peacefully", he said.
The Palestinian used a homemade gun in the attack, known locally as a Carlo, according to Conricus.
Pompeo says North Korea ready to let inspectors into missile, nuclear sites
Trump met with Kim in Singapore in June and - at the time - announced that the two countries are set to " start a new history ". Pompeo told South Korean President Moon Jae-in that the meeting was "another step forward " in the denuclearisation process.
The fact that Fatah did not condemn the murder of the two Israelis is no surprise, because Fatah and the P.A. continue to glorify terrorist murderers as "heroes,", as documented by Palestinian Media Watch.
A wave of Palestinian attacks against Israelis broke out in 2015, but they have since become sporadic.
He said it appeared it was a "lone-wolf attack".
Israelis have portrayed the industrial zone as a symbol of coexistence, though it is located entirely in the West Bank, occupied by Israel since 1967.
Last month, a Palestinian teenager stabbed an Israeli to death at a junction at the entrance to a large bloc of Israeli settlements in the West Bank near Jerusalem.
Gaza's Hamas rulers and other militant groups praised Sunday's attack, but none claimed responsibility for it. It responded by firing rockets into Israeli territory, giving the Israeli military cause to invade the coastal blockade.
As the many recent Palestinian teenage terrorists, murderer Ashraf Walid Suleiman Na'alwa has also grown up being brainwashed by the P.A. and its educational system that murdering Israelis is "heroic". Israel has come under harsh condemnation over the past several years for its response to attacks committed by Palestinians on Israelis, which rights groups have said amounted to "collective punishment" on family members and entire communities in a clear violation of worldwide law.
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