An attacker, believed to be a Palestinian, has open fired at a bus station in an Israeli city, Beersheba.
The assailant entered the bus station and began stabbing and shooting people. A man and solider were killed, according to police, and six people were wounded.
Officers at the station reportedly opened fire on an Eritrean national unconnected with the attack after mistaking him for a second assailant. The wounded man is being treated in hospital.
After the attack a crowd of Israelis gathered outside the bus station chanting “death to Arabs”.
The attack was one of the most serious incidents amid near-daily bouts of violence that have hit Israel and the Palestinian territories over the past month.
It comes as Israel has tightened security around the country and constructed a barrier separating Jewish and Arab neighborhoods in east Jerusalem.
It has also imposed restrictions on worship at the al Aqsa Mosque, which has been a flashpoint of violence and is on a site regarded as holy by both Muslims and Jews.
In the past month, eight Israelis have been killed in attacks by Palestinians, most of them stabbings.
In a bid to halt the fighting, US Secretary of State John Kerry said in Paris he would meet the Israeli and Palestinian leaders in coming days.