EU foreign policy chief Josep Borrell on Saturday condemned the escalating violence between Israel and the Palestinians, urging all parties to exercise restraint and promote calm for the ongoing religious holidays.

Israeli-Palestinian tensions mounted after an Italian tourist was killed and five people were wounded in a car ramming in Tel Aviv on Friday following a shooting attack in the occupied West Bank that killed two Israeli sisters.

"Israel has the right to defend itself. At the same time, any response must be proportionate. The EU calls for an immediate end to the ongoing violence. Everything must be done to prevent the conflict from spreading," Borrell said in a statement.

"We urge all parties to exercise maximum restraint, to avoid further escalation and promote calm for the ongoing religious holidays," he said.

The Muslim holy month of Ramadan, Judaism's Passover and Christian Easter are all occurring this month.