A Palestinian bulldozer driver plowed into a string of vehicles on a busy Jerusalem street Wednesday, killing three Israeli women and injuring dozens of other Israelis before he was shot dead by police, according to Israeli press reports.

Israel's national rescue service confirmed two deaths. Later, medical sources said another wounded woman died in hospital.

The attack took place in downtown Jerusalem. Traffic was halted and hundreds of people fled through the streets in panic as medics treated the wounded.

In a statement, police said a "terrorist" carried out the attack.

At the scene of the attack, two cars were flattened and a third was overturned. One bus was overturned, and another was heavily damaged.

Three Palestinian groups took responsibility for the attack. Hamas, which rules the Gaza Strip, said it did not carry out the attack but nevertheless hailed it. "We consider it as a natural reaction to the daily aggression and crimes committed against our people in the West Bank and all over the occupied lands," said Hamas spokesman Sami Abu Zuhri.

Palestinian President Mahmoud Abbas aide Saeb Erekat condemned the violence. "We condemn any attacks that target civilians, whether Israelis or Palestinians, and President Abbas has been consistent in his position to condemn any attacks, including the one in west Jerusalem, that target civilians," he said.

Israeli government spokesman Mark Regev called the attack a "senseless act of murderous violence." Israeli police referred to the attacker as a "terrorist" acting on his own and said he was a bulldozer operator who worked in the area for a local construction firm.

© 2008 Al Bawaba (www.albawaba.com)