Ariel Sharon has condemned a shooting in Kfar Saba a day after details of a possible ceasefire was announced between Israelis and Palestinians.
A gunman opened fire on passers-by near a police station in the town north of Tel Aviv. Seven people were injured, two of them critically.
Police responded immediately, shooting and killing the gunman. This latest violence undermined the optimism surrounding US envoy Anthony Zinni's third ceasefire mission to the region.
The Palestinian side has refused to enter ceasefire talks until Israel, which continues to occupy two West Bank towns, has pulled out of all cities under Palestinian control.