Israeli police have said that an explosion has gone off in a car in Tel Aviv but that there is a "strong possibility" it is a criminal act.
Associated Press report that police spokesman Micky Rosenfeld said he believed the explosion near a bus was criminally motivated, though he could not definitively rule out that it was political violence.
Rescue services spokesman Zaki Heller says preliminary reports from the scene indicated seven to 10 people were wounded in the explosion.
Several people have been hurt after a car exploded in Tel Aviv according to initial reports from Reuters.
Police say the incident appears to be criminal related and not a Palestinian bombing.
Police blamed terrorists for the attack in Tel Aviv, which happened as the bus drove along a street near the Israeli Defence Ministry. The explosion could jeopardise international efforts to agree a ceasefire between Israel and Gaza, as Nina Nannar explains.
The Foreign Secretary William Hague has said "the UK is deeply concerned at emerging reports of a bomb attack on a bus in Tel Aviv":
Two rockets headed for Tel Aviv have been intercepted by the Israeli 'Iron Dome' air defence system, according to Israeli media reports.