Hours after the first blockade was erected by Israel's government between Jewish and Palestinian neighbourhoods in Jerusalem, a 70-year-old Israeli woman was stabbed and injured outside Jerusalem's main bus station.
The attacker was later shot dead by the police, reported the Daily Star.
In another incident, a Palestinian was shot dead as he tried to stab a policeman near the walled Old City.
Yesterday, Israel Prime Minister Benjamin Netanyahu's security cabinet had ordered to set up checkpoints in Palestinian neighbourhoods of annexed east Jerusalem.
Netanyahu has been in immense pressure to halt the violence and to restore calm.
Over 300 Israeli soldiers have joined the patrolling.
With the increasing attacks, the force struggles to stop the continuous wave of attacks.
Since the beginning of October, over 40 people, including seven Israelis and 30 Palestinians have been killed in a new upsurge in violence.