Two Palestinian gunmen killed four people and wounded six others after opening fire at a popular open-air shopping and restaurant area of central Tel Aviv.
The attacks took place in two locations in Sarona Market, close to Israel’s defence ministry and main army HQ.
Police said the gunmen were from Yatta, a Palestinian village near the West Bank town of Hebron.
Both are in custody. One is undergoing surgery in hospital, police added.
The attacks happened at around 21:30 (18:30 GMT) as people were relaxing in the market’s restaurants and bars.
Video footage showed crowds running from the scene and ambulances arriving.
One woman told Israel’s Channel 10 TV that she had been celebrating her son’s birthday when she heard shots and “immediately understood it was a terror attack”.
“We ran like lightning with the baby and the stroller,” Meital Sassi said. “I yelled at people who didn’t understand what was happening to run.”
Ichilov hospital, where the injured were taken, said four wounded people brought to the hospital had died and at least three of the other wounded were in a critical condition.