Two terrorists opened fire on civilians eating and drinking out in Tel Aviv, killing four and wounding up to 16 others, three badly. They were dressed in suits and ties and had posed as customers at a restaurant before they started shooting.
Muslim Brotherhood-affiliate Hamas claimed that the gunmen were members of their organization, according to the Times of Israel.
One terrorist was shot and injured by a security guard and both were arrested.
Hamas praised the attack as "heroic" and said "this is the first surprise in store for the Zionist enemy during Ramadan" which began this week. ISIS has also called for an increase in attacks during Ramadan.
Palestinians were seen celebrating the terrorist attack in parts of the West Bank and Jerusalem. Fireworks were set off, and in some places people sang and waved flags, according to Reuters.
In the town of Tulkarem, Palestinians were handing out candy to passing cars, according to Israel National News.
Israel has revoked the permits of 80,000 Palestinians as a temporary security measure, meaning they will not be able to enter Israel during Ramadan.
Watch Palestinians celebrating the Tel Aviv shooting at Jerusalem's Damascus Gate: