The raids on eight companies came hours after the Israeli government declared that it would not deal with an emerging Palestinian unity government that includes Hamas unless the Islamist group made radical changes.
Israeli officials said the raids targeted companies that provide services to Hamas television stations. Notices were posted saying the companies were to be closed for six months.
"Israeli army forces last night raided eight Palestinian production and media companies that provide services to Al- Aqsa and Al-Quds TV channels," the head of an Israeli defence ministry unit known as COGAT, Yoav Mordechai, wrote on Facebook, referring to Hamas channels.
Israeli officials provided no specific examples of the alleged incitement. At least one of the companies targeted provides various services to a range of local and international news media.
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The Palestinian Authority said it condemned the raids "in the strongest terms".
"Occupation forces committed a blatant aggression and gross violation of all international laws when they stormed Palestinian cities and raided media offices," PA government spokesman Yusef al-Mahmoud said in a statement.
US President Donald Trump has been seeking ways to restart long-stalled Israeli-Palestinian peace efforts.
A Palestinian journalists' union official in the southern West Bank city of Hebron said that the offices of three companies providing production services to Hamas television channels were closed and equipment and documents seized.
They were named as Palmedia, Ramsat and Transmedia, a satellite broadcasting facility where two members of staff were arrested, the union official said.
Some 50 people were out of work due to the Palmedia closures, he said. The company provides services to a range of local and international media.
A military spokeswoman told AFP that security forces "searched a number of media and production offices suspected of broadcasting inciting content, encouraging, celebrating and promoting violence and terrorism against Israelis.