The US on Wednesday condemned the comments made by Israel's finance minister in which he called for the Palestinian village of Huwwara to be "wiped out", and said the remarks were "repugnant, irresponsible and disgusting".

US State Department spokesman Ned Price called on Israeli Prime Minister Benjamin Netanyahu and other top officials to "publicly and clearly" disavow Finance Minister Bezalel Smotrich's comments.

"I want to be very clear about this. These comments were irresponsible. They were repugnant. They were disgusting," Price told reporters on Wednesday.

"And just as we condemn Palestinian incitement to violence, we condemn these provocative remarks that also amount to incitement to violence."

Earlier on Wednesday, Smotrich, who in addition to being finance minister is responsible for Israel's civil administration in the occupied West Bank, said Israel should "wipe out" the Palestinian village of Huwwara in the wake of a violent rampage by settlers on Sunday.

"The Palestinian village of Huwwara should be wiped out. The state needs to do it and not private citizens," he said.

In an Israeli rampage on Huwwara and other Palestinian villages on Sunday, at least one Palestinian was killed and nearly 400 were wounded. Israel's police have arrested 10 people for suspected involvement in an anti-occupation attack that led to the death of two Israelis.

Before and after the mob violence took place, several Israeli politicians, including Smotrich, appeared to encourage or support the settlers' actions.

Smotrich liked a tweet that called for Israeli politicians to show no mercy and that the "village of Huwwara should be erased today".

On Tuesday, former defence minister Benny Gantz said Smotrich wanted "another Nakba", a term that describes the massacres and forced expulsion Palestinians endured at the hands of Zionist militias in 1948, as the new Israeli state came into existence.