STORY: Seven people were killed in Friday's attack and two others were wounded in another shooting in the city on Saturday.

"We are not seeking escalation, but we are prepared for any scenario," Netanyahu said as he convened his security cabinet which he said would seek an increase in gun permits for licensed civilians to defend against street attacks.

The attacks took place towards the end of a month of growing confrontation and follow an Israeli raid in the West Bank city of Jenin that killed nine Palestinians, including seven gunmen, and cross-border fire between Israel and Gaza.