At least six people have been killed in a bomb blast in Tel Aviv.
Police described the blast as a terror attack. A witness said two suicide bombers blew themselves up a few seconds apart.
Tel Aviv police commander Mr Yossi Sedbon said the bomb exploded on Neve Shaanan street in the southern part of the downtown area, near the old central bus station.
An eyewitness told Israel Army Radio that he saw a suicide bomber blow himself up. Another report spoke of two suicide bombers.
Meanwhile in Ramallah, on the West Bank, two Palestinians were killed in a powerful explosion in the al-Amari refugee camp.
In Tel Aviv ambulances and police raced to the scene and closed off the area. The area is crowded with small shops and stalls. Many foreign workers live in the rundown district.
Israel Radio reported that the bomb went off at the entrance to the Central Theatre, near a cafe. An Israel Radio reporter at the scene said he saw the bodies of victims lying on the street.
A rescue service worker said 30 wounded people had been evacuated from the scene. An Israel Radio reporter at the scene said the six bodies apparently included the suicide bombers.
Israel blamed the Palestinian Authority, led by Mr Yasser Arafat.
"The Palestinian Authority continues to do nothing to stop the murderous attacks launched from its territory," said Mr David Baker, an official in the Prime Minister's Office.
"This attack in Tel Aviv proves that Palestinian terrorists are determined to murder, maim and terrorize as many Israelis as they can, thinking that by doing so they can pressure Israel into concessions," he said.