A suicide bomber blew up a bus packed with Jews returning from the Western Wall last night, killing at least 20 people and wounding more than 100 in one of the deadliest bombings in the past three years of fighting.
The militant group Islamic Jihad claimed responsibility in a call to a Lebanese TV station.
The bombing threatened to derail the US-backed "road map" peace plan. In a first move, Israel froze talks initially set for last night on the hand back of four West Bank towns to Palestinian control. Islamic Jihad has said it would avenge the killing of a senior operative by Israeli troops last week. Hamas said it was not involved.
The explosion went off shortly after 9 p.m. as the crowded tandem bus drove along a main route through Jerusalem and another bus pulled in front of it, witnesses said.
"It was the No 2 bus that came from the Western Wall," said a motorist, Mr Jacob Bitnovsky. "It was a double bus. I heard a huge blast and when I turned around I saw parts of the bus flying everywhere. I got out of the car and ran."
The bus had started out at the Western Wall, Judaism's holiest shrine, and was going to an ultra-Orthodox Jewish neighbourhood, making it likely that many of the passengers were religious Jews.
Jerusalem Police Chief Mickey Levy said the blast was apparently set off by a suicide bomber. The second bus was also badly damaged. Shocked survivors, including several crying children with blood-smeared faces, were led away from the scene. A paramedic cradled a little girl in his arms, and two others led away an older woman.
Paramedics treated wounded on the roadside, while body parts were strewn across the pavement.