Gunman opens fire at bus stop in Jerusalem, killing three and wounding seven

A gunman has opened fire at a bus stop in Jerusalem's Old City, killing three and wounding seven.

It happened early on Sunday as the group of Israelis were waiting in a car park near the Western Wall, considered the holiest site for Jews to pray.

According to The Times of Israel, the gunman had waited for the bus's arrival and fired the shots while passengers were boarding, before fleeing on foot.

Police were conducting a widespread manhunt throughout the city.

The incident comes following a tense week between Israel and the Palestinian Islamic Jihad.

Three non-stop days of fighting broke out in Gaza after Israel killed Islamic Jihad commanders there, and after three Palestinian militants in the occupied West Bank were also killed.

At least 49 were killed in Gaza and another 300 injured.

Israel reported no deaths or serious injuries.

Many feared the latest violence would result in the fifth full-scale war in Gaza since militant group Hamas seized control of the local administration in 2007, but a tentative peace followed until Sunday's shooting.