A car bomb packed with bullets exploded in a car park near a busy shopping district in Jerusalem today, but no one was hurt in the blast, Israeli police said.
The explosion lifted cars off the ground along the heavily travelled Bethlehem road at a time when Israelis were busy shopping on the eve of the Jewish Succot holiday.
Police said the bomb was packed with bullets from AK-47 and M-16 automatic rifles.
Militant Palestinians have carried out a wave of bombings since a Palestinian uprising against Israeli occupation erupted last year after peace talks became deadlocked.
It was the first bombing against Israelis since Palestinian President Mr Yasser Arafat and Israeli Foreign Minister Mr Shimon Peres reaffirmed a truce agreement last Wednesday.
More than 750 people have been killed since the revolt began after peace talks stalled.
But the two sides have reinforced truce efforts since the United States started trying to recruit Islamic states into its anti-terrorism alliance after the suicide hijacking attacks in New York, Washington and Pennsylvania on September 11th.