A suicide bomber has detonated explosives at a bus stop in northern Jerusalem, killing at least seven people and injuring about 35.
It is the second lethal bombing in Jerusalem in as many days.
In the latest blast, the bomber emerged from a red Audi car, dashed past two policemen and set off the explosive at the bus stop near a busy intersection.
"The police chased him to try to stop him, and when he got to the (bus stop), he blew up a large device," said police chief Mr Mickey Levy. One of the policemen chasing him was badly hurt.
The car sped away, disappearing into Palestinian neighbourhoods in east Jerusalem, police said.
"We will of course take whatever action necessary in order to continue to protect the citizens of Israel," said Israeli government spokesman Mr Arieh Mekel.
"We hold the Palestinian Authority and its leader, Mr Yasser Arafat, responsible for all this."
Israel says Mr Arafat is responsible because his security forces have not prevented the attacks.
Palestinian suicide bombers have carried out 71 attacks against Israel in nearly 21 months of Mideast violence, killing more than 220 people.