A Palestinian suicide bomber has killed at least nine people as well as himself in an attack in Tel Aviv.
Police said around 60 others were injured in the incident which happened on a busy street near the city's old bus station.
Israel's acting Prime Minister Ehud Olmert said Israel would 'act with all means at its disposal' to prevent further attacks.
It is the first such attack since the swearing in of the new Palestinian government, led by the militant group, Hamas.
Hamas has this afternoon described the attack was an act of self-defence.
However, moderate Palestinians did not agree.
The Chief Palestinian negotiator, Saeb Erekat, condemned today's violence.
This afternoon, an Israeli artillery shell killed a Palestinian and wounded two others in the northern Gaza town of Beit Lahiye,
The Israeli military had been firing towards areas where militants launch cross-border rocket attacks.
