It was one the most brazen attacks in nearly five months of near-daily Palestinian assaults, mostly stabbings, on Israeli police, soldiers and civilians. Israel has struggled to contain the violence, despite sending troops to secure cities, expanding police powers and toughening punishments for attackers.
Today's attack took place after Israeli paramilitary border police officers on a security patrol noticed three people who aroused their suspicion near the Old City's Damascus Gate, a central shopping area for Palestinians as well as a main tourist draw, police spokeswoman Luba Samri said.
Police officers opened fire and killed the three Palestinians. They then defused the explosive devices they were carrying.
"The weapons indicate that a combined attack was prevented by officers who protected city residents with their own bodies," Samri said in a statement.
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Police identified the Palestinians as two 20-year-olds and one 21-year-old from the area of Jenin, in the northern West Bank.
Since mid-September, 27 Israelis have been killed in Palestinian attacks. At least 154 Palestinians have died from Israeli fire, including 109 Israel said were attackers. The rest have been killed in clashes with Israeli troops.
Israel says the violence has been fueled by a Palestinian campaign of lies and incitement. The Palestinians say it is rooted in frustrations stemming from nearly 50 years of Israeli occupation.
Hamas, the Islamic militant group that rules the Gaza Strip, praised the attack as "heroic," lauding the assailants' ability to reach Jerusalem despite a maze of Israeli checkpoints in the West Bank. The group stopped short of claiming responsibility.