Updated

Israeli rescue service says a bus has exploded in the heart of Jerusalem, wounding at least 10.

Monday's blast comes amid a wave of Palestinian attacks on Israelis, mostly stabbings, and immediately raises fears of a return to the regular suicide attacks that ravaged Israeli cities a decade ago.

Images show fire and large plumes of smoke billowing from the back of the bus.

The Magen David Adom rescue service says 10 people have been wounded, including two seriously. Police are calling it a terrorist attack.