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The aftermath of the bus explosion in Tel Aviv
There has been an explosion on a bus in Israel's commercial capital Tel Aviv, police say, amid continuing exchanges between Israel and militants in Gaza.
There are at least 10 injuries in what police called a "terrorist attack".
The incident comes as Israel continued its strikes on Gaza, including a key compound of the Hamas government, and militants fired more rockets at Israel.
International efforts to broker a truce are continuing with talks in the West Bank, Jerusalem and Cairo.
US Secretary of State Hillary Clinton and UN Secretary General Ban Ki-moon are in the region to discuss a ceasefire.
RoadblocksIsraeli Prime Minister Benjamin Netanyahu's spokesman Ofir Gendelman said on his Twitter account that the explosion was caused by a bomb and that it was "terrorist attack".
Emergency services say five of the wounded in the bus explosion are in a serious or moderate condition.
An Israeli who witnessed the explosion told Army Radio the bus was "completely charred".
End Quote Sami Abu Zuhri Hamas spokesmanHamas blesses the attack in Tel Aviv and sees it as a natural response to the Israeli massacres... in Gaza"
The bus was reportedly passing the military headquarters in the city at the time.
Israel's Haaretz newspaper said the injured were being taken to Ichilov hospital and that roadblocks had been set up in the area to search for a suspected bomber.
Loudspeaker announcements in Gaza City said that Hamas, the militant Palestinian group that has run Gaza since 2007, had carried out the attack.
Hamas spokesman Sami Abu Zuhri told Reuters: "Hamas blesses the attack in Tel Aviv and sees it as a natural response to the Israeli massacres... in Gaza."
Celebratory gunfire reportedly rang out when local radio relayed news of the attack.
It took place on the eighth day of exchanges between Israel and militants in Gaza.
Some 139 Palestinians and five Israelis have been killed.
'Profound concern'The explosion will further complicate ceasefire discussions taking place in the region.
Mrs Clinton and Mr Ban have been in the West Bank for talks with Palestinian Authority President Mahmoud Abbas.
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Ban Ki-moon: "Now is the time for diplomacy and stopping the violence"
They will later travel to Egypt, where they will meet Egyptian President Mohammed Mursi in the early afternoon local time.
Mr Ban expressed "profound concern" at the civilian casualties in Gaza and also called on militants to end immediately their "indiscriminate attacks on Israeli population centres".
Officials from Hamas had suggested on Tuesday that a truce would come into effect at midnight, but Israel later said it had not agreed to a text.
Israel's demands include no hostile fire of any kind from Gaza and international efforts to prevent Hamas from re-arming, while Hamas is demanding an end to the blockade on Gaza and targeted killings by Israel.
Israel launched its current offensive a week ago with the killing of Hamas military leader Ahmed Jabari. The Israeli government says his assassination, and the subsequent offensive, aims to end rocket fire from Gaza.
Israel has troops massed along the Gaza border but says it is holding off on a possible ground invasion as talks continue.
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