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Two Hamas gunmen opened fire at a bus stop near an entrance to Jerusalem on Thursday, killing at least three people and wounding eight more, authorities said.
The attack occurred during the morning rush hour when the men pulled up alongside the busy bus stop and started shooting.
They were both killed at the scene of the attack in Ramot, East Jerusalem, by two Israeli soldiers, assisted by a civilian, local media reported.
Avi Pels, 20, who studies at a university close to the scene of the attack, said he woke up to the sound of gunfire. He went to the bus stop about 20 minutes after the incident.
“I come here and I just see horror. I see police all over. I see the Jewish girl that was killed – she was lying down here,” the British-Israeli student told The National, pointing to the ground next to a bench for commuters to wait on.
Israeli media identified the victims as a woman in her 20s, a woman in her 60s and a 74-year-old rabbi.
Hamas said in a statement that "the operation came as a natural response to unprecedented crimes conducted by the occupation in Gaza and against children in Jenin".
On Wednesday, Israeli forces killed four Palestinians, including two boys aged eight and 15, as well as two senior militant commanders, in the occupied West Bank city of Jenin, Palestinian official news agency Wafa said.
Security camera footage from Thursday's attack showed the gunmen getting out of a car and opening fire on commuters at the bus stop.
The stop was the scene of a deadly bombing on November 26.
The attackers came from East Jerusalem, Jerusalem Police District Commander Doron Turgeman said.
Israel's Shin Bet security agency identified the gunmen as brothers, aged 30 and 38, who were affiliated with Hamas, which runs Gaza. Both had previously been jailed in Israel.
Local resident Abigail Lavi said she had been saddened by the latest attack but was accustomed to such incidents.
“We live with terrorism. This is what we have, the same feeling all the time,” she told The National.
Prime Minister Benjamin Netanyahu, who held talks with US Secretary of State Antony Blinken in Jerusalem on Thursday, said he told the top diplomat that Hamas "is trying to murder us everywhere".
"I told him: We have sworn, I have sworn, to eliminate Hamas. Nothing will stop us," Mr Netanyahu said in a statement.
Mr Blinken also visited Palestinian President Mahmoud Abbas in Ramallah on Thursday.
Hamas said the pause has been extended for one more day. Israel did not immediately indicate how long the extension would be.
This will allow negotiators to keep working on deals to swap hostages being held in Gaza for Palestinian prisoners.
Mr Blinken said the truce between Israel and Hamas had produced results and that the US hoped it would continue.
The US ambassador to Israel condemned Thursday's shooting.
“Abhorrent terrorist attack in Jerusalem this morning. We unequivocally condemn such brutal violence,” said ambassador Jack Lew.