A bomb has exploded near a bus stop in a Jewish neighbourhood of Jerusalem, killing one woman and injuring at least 30 people.
Police have described the explosion as a 'terrorist attack', but there has been no claim of responsibility.
The explosion was caused by a bomb planted close to Jerusalem's main conference hall and central bus terminal.
Internal Security Minister Yitzhak Aharonovitch said the bomb weighed about 2kg. 'It exploded in a small suitcase on the sidewalk next to the bus stop,' he told Israel's Channel 2 television.
Police said it was the first such bombing in Jerusalem in seven years.
Palestinian Prime Minister Salam Fayyad swiftly denounced the attack. 'I condemn this terrorist operation in the strongest possible terms, regardless of who was behind it,' he said in a statement released by his office in the West Bank.
Prime Minister Benjamin Netanyahu postponed his departure to Russia after the incident.
Elsewhere, the Israeli city of Beersheva has been hit by two rickets fired from Gaza, leaving one man injured.
The first rocket struck the centre of Beersheva around dawn, slightly injuring one man, while the second, which was fired several hours later, landed harmlessly in an open area.
The army said seven mortars had also landed in Israel.
