A bomb exploded at a crowded bus stop in Jerusalem yesterday killing one woman and wounding more than 20 others in the first militant attack in the city in years.
There was no immediate claim of responsibility but Israeli police blamed Palestinian militants.
Yesterday’s attack came against the backdrop of a rising wave of violence from both sides that has threatened to upset more than two years of relative calm.
Earlier this month five members of a Jewish settler family were knifed to death while asleep at their West Bank home.
And in recent days Israel has carried out reprisals in Gaza. On Tuesday an Israeli strike intended for militants killed four members of a Palestinian family.
Adding to the tensions, peace |efforts with the Palestinian government have stalled for months.
Palestinian leaders condemned the attack.
Israel's Defence Minister Ehud Barak hinted that Israel would retaliate against Hamas, who said it was not connected to the blast.