The attack on Saturday morning comes just a day after a Palestinian gunman opened fire outside of a synagogue in Jerusalem at the start of the Jewish sabbath, killing seven people.
Israeli police say they shot and killed the gunman. The State Department condemned the "absolutely horrific" attack.
Tensions between Israelis and Palestinians have been surging for months, amid nightly raids in the West Bank prompted by a spate of attacks against Israelis that killed 19 people in the spring.
A Palestinian gunman opened fire at a bus near Jerusalem's Old City early Sunday, wounding eight Israelis in an attack that came a week after violence flared up between Israel and militants in Gaza.
Pakistan doesn't recognize Israel. After a delegation visited Israel and even met with its president, Pakistani senators were outraged and one visitor got fired.
Jewish pilgrims visited early Sunday ahead of a nationalist parade through the Old City, prompting Palestinians to throw rocks and fireworks.
Israeli police entered the compound in the Old City to secure the way for Jewish visitors to the holy site, fueling clashes that left 17 Palestinians wounded.
Clashes broke out between Israeli police and Palestinians at the Al-Aqsa Mosque early Friday, with claims Israeli police entered in force shortly after early morning prayers.
Around 100 Palestinians were injured as protesters and Israeli police clashed in the latest of several nights of violence over possible evictions of Palestinians from land claimed by Jewish settlers.
The city is seeing Christian and Jewish religious gatherings this week after the same events were canceled last year due to the coronavirus pandemic.