A video circulated on Israeli social media on Saturday, appeared to show a scuffle between two men in the middle of the road that ended with one of them shooting the other.
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Authorities said a 19-year-old Arab Israeli was critically wounded in the shooting and taken to a nearby hospital in Afula, where he was pronounced dead.
The victim was later named Diar Umari, a resident of the northern Arab village of Sandala. According to reports, Umari, who worked in his father's business, celebrated his 19 birthday on Friday.
Israeli police arrested a 32-year-old resident of Gan Ner, a community settlement in northern Israel, in connection with the incident, and confiscated his weapon.
Police said they were investigating the motive behind the incident, which took place amid a crimewave gripping Israel’s Arab communities.
Arab-Israeli politician Ahmad Tibi tweeted the video of the incident, linking it to the allegedly incendiary rhetoric by Israel's Police Minister Itamar Ben-Gvir.
Meanwhile, Hamas, a Palestinian terrorist group ruling over the Gaza Strip, made a statement pledging to "avenge" the young man's death and blaming it on "the occupation regime."
i24NEWS contributed to this story.