An explosion has hit a public bus in the heart of Tel Aviv, wounding at least 10people, even as frantic diplomatic efforts continued to secure a truce between Israel and Hamas.
Police described the explosion as a terror attack. It endangered truce talks taking place between Benjamin Netanyahu, the Israeli prime minister, and Hillary Clinton, the US Secretary of State.
A police spokesman said that of the wounded, five people were moderately to seriously hurt.
"A bomb exploded on a bus in central Tel Aviv. This was a terrorist attack. Mostof the injured suffered only mild injuries," said Ofir Gendelman, a spokesman for Mr Netanyahu.
The bus was charred and blackened, its side windows blownout and its glass scattered on the asphalt.
An Israeli driver whowitnessed the explosion told Army Radio the bus was"completely charred inside." Another witness said there were few passengerson the bus when it exploded.
Police spokesman Micky Rosenfeld said authorities were investigating whether the bomb had been planted and left on the bus or whether it was the work of a suicidebomber.
Witnesses told the BBC that they saw a man leave something on the bus near the nation'smilitary headquarters.
The attack happenedon the eighth day of an Israeli offensive against the Gaza Strip which it launched with the stated aim of preventing rocket strikes from the Palestinian enclave.
Celebratory gunfire rang out in Gaza City when local radio stations reported news of the Tel Aviv explosion.
The last time Israel's commercial capital was hit by a serious bomb blast was in April 2006, when a Palestinian suicide bomber killed 11 people at a sandwich stand nearthe city's old central bus station. "There are about 10 people wounded of whom three are in serious condition," emergency services spokesman Zaki Heller told public radio.
"There was an apparent explosion on a bus in Shaul HaMelech Street in Tel Aviv. The background and circumstances are not clear yet," police spokesman Luba Samri told AFP.
News of the explosion came as Hillary Clinton, the US secretary of state,is engaged in strenuous shuttle diplomacy to wring an elusive truce deal from Israel and Gaza's militant Hamas rulers, after earlier attempts to end more than a week of fighting broke down amid heavy overnight bombing.
Mrs Clinton joined other diplomats in shuttling between Jerusalem, the West Bank and Cairo, trying to piece together a deal aftera week of fighting and mounting casualties.
After meeting Benjamin Netanyahu, the Israeli Prime Minister, in Jerusalem on Tuesday night, Mrs Clinton conferred with Palestinian President Mahmoud Abbas in the West Bank on Wednesday morning.
She then returned toJerusalem for furthertalks with Mr Netanyahu, Ehud Barak, the defence minister and AvigdorLieberman, the foreign minister.
She was due to travel to Cairo, carrying Israeli demands for further Egyptian assurances that the flow of armsto Hamas, the militant faction that controls Gaza, can becut off.
Protesters angered by the eight-day Israel operation to bomb Gazan rocket arsenals gathered outside the Ramallah complex housing the Palestinian Authorityas Mrs Clinton met Mahmoud Abbas, its president.
The US envoy arrivedin Israel last night and met Benjamin Netanyahu, the Israeli prime minister who launched Operation Pillar of Defence last Wednesday. He said the US and Israel would take the opportunity to align their positions so that diplomacy coulddraw the conflict to a close.
"If there is a possibility of achieving a long-term solution to this problem with diplomatic means, we prefer that," he said. "But if not, I'm sure you understand that Israel will have to take whatever action is necessary to defend its people."
Sources in Gaza reported the death toll in Gaza had reached 139 by Wednesday morning.
Instead of an expected cessation, Israel’s military laid on a heavy bombardment of artillery and aerial bombing on Gaza after warning residents to move todesignated “safe areas”.
In the hours of darkness, Israeli forces targeted dozens of “terrorist infrastructure sites”. More than 30 strikes overnight also included government ministries and a banker's empty villa.
At least four strikes within seconds of each other pulverised a complexof government ministries covering acity block, rattling nearby buildings andshattering surrounding windows. Hours later, clouds of acrid dust still hung over the area and smoke still rose from the rubble.
The list of targets destroyed in bombing runs included weapon depots, smuggling tunnels and rocket-launching bases.
A Hamas operations centre on the seventh floor of a high-rise building was hit. Offices in the building included media organisations, who were warned their status would afford them no protection as Israel sought highvalue targets.
“Warning to reporters in Gaza,” the army said in a message on Twitter. “Stay away from Hamas operatives & facilities. Hamas, a terrorist group, will use you as human shields.”
Three journalists were among the dead on Tuesday as Israel hit cars it believed contained Hamas figures.
Two worked for news outfits affiliated with Gaza'sHamas government and a third journalistworked for a private radio station was killed in a separate incident.
Two Israelis were also killed by rocket fire from Gaza, bringing to five the casualties in Israel.
Egypt's Islamist government is mediating talks and had floated hopes for a ceasefire by late Tuesday.
Hamas leaders in Cairo accused the Jewish state of failing to respond to proposals and said an announcement on holding fire would be pushed into Wednesday.
Officials suggested that no outcome would be sealed until Mrs Clinton metPresident Mohammad Morsi in Cairo this afternoon.

Yep, Peace with Islam... Sure.

You want some beach front real estate I own in Montana? How about my time share on the shore of the Sea of Tranquility!

PeaceTreaty?!?