Eight Israelis have died after a bus driven by a Palestinian veered into a bus stop used by soldiers and civilians.
At least nine people were injured, including six who were in stable or serious condition.
The Palestinian driver fled in the bus, but was caught by police who fired shots at the vehicle and seriously injured him.
There has been no immediate claim of responsibility for the attack.
The attack occurred at a crowded bus stop in the small town of Azur, south of Tel Aviv.
The bus, owned by the Israeli company Egged, had transported Palestinian workers from the Gaza Strip to Israel.
Bus company spokesman Ron Rattner says the driver was a Palestinian who had clearance from security services to drive Palestinian workers into Israel.
The driver, who was from the Gaza Strip, had been employed by Egged for the past five years.
Witnesses say the bus ran into soldiers and civilians at the bus stop, then raced southwards, towards the city of Ashdod.
"The bus was moving slowly and suddenly it speeded up and drove into the soldiers," says witness Ayelet Cohen-Natan.
"One of them was thrown up into a tree and fell to the ground ... I saw dead people with arms, legs and heads cut open. It was terrible."