Jerusalem Hit-And-Run 'Attack' Kills Baby

A three-month-old baby has been killed and eight other people wounded after a Palestinian drove into them at a crowded train station in east Jerusalem.

The driver - named as Adbel-Rahman Shaloudi - was shot by police as he ran from the scene.

"We can confirm that this was a terrorist attack. The driver ... is a resident of Silwan and has a terrorist background," police spokesman Micky Rosenfeld said.

"He has served time in jail for terror activity."

Footage of the alleged attack showed the car turn right off the road and speed into the light railway platform, hitting pedestrians before coming to a halt after apparently hitting a signpost.

The parents of the dead girl were reported to be US citizens.

Two of the injured pedestrians are in a serious condition, police said.

In other images broadcast on Israeli media, Shaloudi is seen lying on the ground as a plain-clothed police officer stands over him pointing his weapon.

The 21-year-old died of his injuries in hospital.

Israeli prime minister Benjamin Netanyahu blamed the Hamas movement for the attack and criticised Palestinian President Mahmoud Abbas for entering into a unity government with them.

"Terrorist attacks like today's in Jerusalem are typical of Hamas, President [Mahmoud] Abbas' partner in the Palestinian government," spokesman Mark Regev said.

Later, residents of Silwan threw rocks and petrol bombs at the police, who responded with stun grenades.

The predominantly Arab neighbourhood has seen tensions spike in recent weeks since Jewish nationalists moved into several homes in Arab areas.

Tensions have also risen in east Jerusalem since the kidnapping and killings of three teenage Israelis in the West Bank in June and the subsequent burning to death of a Palestinian teenager by Jewish extremists.

The light rail system, which was hailed as a sign of hope for a peaceful co-existence when it was opened, has been targeted by rock-throwing Palestinians and more than one-third of its carriages are out of service.