Diplomatic sources said European diplomats were part of the delegation to the West Bank city of Jenin.
The military said "the delegation deviated from the approved route and entered an area where they were not authorised to be" and that soldiers fired "warning shots to distance them away".
No injuries or damage were reported, the military said.
The European Union's foreign policy chief Kaja Kallas said she had heard about the incident which happened on a visit by diplomats organised by the Palestinian Authority.
"We definitely call on Israel to investigate this incident and also held these accountable who are responsible for this and any threats on diplomats' lives," she said.
The Spanish foreign ministry said a Spaniard was among the group of diplomats, who was unhurt.
"We are in contact with other affected countries to jointly co-ordinate a response to what happened, which we strongly condemn," it said in a statement.
Italian Foreign Minister Antonio Tajani said on X that Israel's ambassador to Rome would be summoned to explain.
French Foreign Minister Jean-Noel Barrot also said he would summon the Israeli ambassador.
Barrot, writing on X, called the incident "unacceptable" and said the ambassador would be required to explain.
Ireland's Foreign Affairs Minister Simon Harris condemned the incident "in the strongest terms" and said it was "completely unacceptable".
"I am shocked and appalled at reports that the IDF fired shots in the vicinity of a visit to Jenin today by a group of diplomats, including two Irish diplomats based in Ramallah," Harris said.
Turkey's foreign ministry called for an immediate investigation and accountability.
Footage on Israeli television showed individuals running to vehicles with diplomatic licence plates as shots were heard in the distance.
The Palestinian Authority's foreign ministry said "the delegation was undertaking an official mission to observe and assess the humanitarian situation and document the ongoing violations perpetrated by" Israel.
The ministry called the Israeli military's actions a violation of international law.
The Israeli military has killed dozens of Palestinians and destroyed many homes in the West Bank since it launched an operation in January in the city of Jenin to root out militants.
with PA
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