Five people were shot dead on the outskirts of Tel Aviv in Israel, medics said.
This is the third attack on the Israelis within days.
The attack took place in Bnei Brak, one of the country’s most densely populated areas for Orthodox Jews.
A medic at the scene said the gunman was shot dead by police.
Israeli security forces were on high alert following the attacks on Tuesday and Sunday, which left six people dead.
Residents in Bnei Brak said a man was driving around the area and opened fire on passersby on Tuesday.
Footage from the scene showed the dark-clad gunman raising his automatic weapon and firing through the car window at close range.
The Jerusalem Post reported that one person was found dead in a car and others were found in nearby streets.
Israeli Prime Minister Naftali Bennett held an emergency security meeting, and his security cabinet will meet on Wednesday.
Bennett said that “Israel is facing a deadly wave of Arab terrorism.” “The security forces are working. We will fight terrorism with perseverance, stubbornness and an iron fist,” he added.
Former Prime Minister and current opposition leader, Benjamin Netanyahu, said that Israel is “in the midst of a dangerous wave of terror that we have not seen for many years… Resolute measures must be taken to restore peace and security to the citizens of Israel.”
US Secretary of State Anthony Blinken condemned the attack.
“This violence is unacceptable,” he said. “Israelis, like all people around the world, must be able to live in peace and without fear.”
Israeli media reports said the attacker was a 27-year-old Palestinian from a village in the northern occupied West Bank.
The official Palestinian news agency “Wafa” said that Palestinian President Mahmoud Abbas condemned the killing of the Israelis.
But the Hamas movement, which holds power in Gaza, praised the attack, saying, “We express our blessing to the Tel Aviv operation.”
Security has already been tightened across Israel and the West Bank following the previous two attacks.
During the past few days, it was subjected to attacks and stabbing incidents.
Four people were killed and several others wounded a week ago in an attack in the city of Beersheba.
The police identified the attacker, an Arab citizen of Israel who worked as a teacher, and had been arrested on charges of having links with the Islamic State.
And last Sunday, an armed attack took place in the Israeli city of Hadera in northern Israel, killing two policemen. The police said that “the gunmen were Arab citizens of Israel, and they were shot dead by undercover officers.”
There are fears of more accidents in the coming month when Ramadan, the Jewish Passover and the Christian Easter coincide in rare time.