According to superintendent Micky Rosenfeld, Israel police's foreign press spokesman, the terrorist drove to a nearby junction, opened fire and hit a civilian.
The attacker, who was identified by Israeli police as a 39-year-old resident of Silwan, a Palestinian neighbourhood of east Jerusalem, fled the scene chased by police.
He was stopped in the nearby Arab neighborhood of Sheikh Jarrah, and after a shoot out with officers, the police successfully neutralised him.
The victims who were injured in the attack were taken to Hadassah University Medical Center on Mount Scopus.
