A car bomb blew up shortly before 17:00 on Thursday on Rokach Street, near the ultra-orthodox neighborhood of Me'a Sh'earim in Jerusalem. Israeli ambulance service Magen David Adom and firefighters arrived immediately on the scene. The blast ignited a nearby car, but firefighters extinguished the flames. Ten people were wounded in the explosion, but only three required hospitalization. A 65-year-old woman was taken to Jerusalem's Hadassah Hospital for treatment of shrapnel wounds in her forehead, while two others were taken to the capital city's Bikur Holim Hospital. Another seven people were treated on site for shock.

Police had been warned ahead of time of an impending terror attack and Israel's Channel 2 television says more attacks are expected.

The bomb was reportedly placed in a Kaya car.

An unknown Palestinian terrorist organization, calling itself the National Palestinian Resistance Forces, claimed responsibility for the bombing, Israel Radio reported. An anonymous caller said the attack and others that would follow are in response to the "arrogance" of Prime Minister-elect Ariel Sharon.

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Israel's Prime Minister-elect Ariel Sharon says continued peace negotiations with the Palestinians are contingent on a complete halt in the violence.

Likud MK Danny Naveh adds that responsibility for the attack belongs to the Palestinian Authority. He insists that the new Likud government under Ariel Sharon wants peace, but will not seek to obtain it at the expense of the Israeli people.