A security guard at the US Embassy in Tel Aviv has been injured after being attacked and stabbed.
It was initially claimed that the attacker was an Arab who had approached the American building on Hayarkon Street, but police later ruled out that theory and revealed the attacker was Jewish.
Early reports from Israel had suggested the man had used an axe in the attack, but later claimed the guard was stabbed.
Despite suffering injuries the security officer shot the attacker in the leg and the man was arrested. Television footage showed two ambulances leaving the scene.
The incident happened on Tuesday morning as US Secretary of State Hilary Clinton made her way to the region for meetings in Jerusalem, Ramallah and Cairo.
Around 50 rockets hit southern Israel earlier as speculation continued that a ceasefire may be agreed to bring to an end a week of violence.
Israeli ministers are said to have put off a possible ground invasion for at least 24 hours in an attempt to give diplomatic efforts a chance of success.