A father and kid were gravely hurt, and the perpetrator was shot by onlookers and is currently being treated in a hospital.
It happened after a shooting on Friday at a synagogue in East Jerusalem, which left seven people dead and at least three more injured.
42 persons have been detained by police in relation to the incident.
A spokeswoman for the Israeli police described the event that happened on Saturday and took place in the Silwan neighborhood outside of Jerusalem’s Old City, saying the attacker attacked five individuals as they were heading to prayer and left two of them in “serious condition.”
Dean Elsdunne declared, “This is a substantial increase in the degree of fear,” and added that the “terrorist” was receiving medical attention.
Local media identified the individual who assaulted the synagogue on Friday as a Palestinian from East Jerusalem.
Israeli police commissioner Kobi Shabtai described the incident as “one of the deadliest attacks we have faced in recent years” when speaking on the scene on Friday.
At around 20:15 local time, the assailant started fire on Israeli worshipers who had gathered for prayers at the start of the Jewish Sabbath in a synagogue in the city’s Neve Yaakov neighborhood (18:15 GMT).
According to the police, policemen then fatally shot him.
While not claiming responsibility for the incident, Palestinian terrorist factions applauded it.
Since nine Palestinians, including terrorists and civilians, were murdered on Thursday during an Israeli military assault in Jenin in the occupied West Bank, tensions have been particularly high.
Following this, Gaza started firing rockets into Israel, to which Israel retaliated with airstrikes.