A responding police officer shot and killed the suspected shooter, who was thought to be from the Palestinian hamlet of Jenin.
An Israeli police inspector was killed by a shooter after the assailant opened fire in central Tel Aviv.
On Saturday, police and residents of the seaside city were seen on amateur footage running along the streets dotted with cafes.
The shooter was identified by police as Kamel Abu Bakr, 27, from a town close to the volatile city of Jenin in the occupied West Bank.
A municipal patrol officer was shot and injured as he approached the suspect after spotting something odd. According to the Magen David Adom emergency service, he was admitted to the hospital “in critical condition” and passed away later.
Police stated that “significant police forces are present at the scene” and added that “another municipal inspector responded swiftly and managed to neutralise the terrorist.”
Ron Huldai, the mayor of Tel Aviv, told Israel’s state network, “We are witnessing a very sad incident.”
The shooter is thought to be a resident of Jenin, a Palestinian village in the occupied West Bank.
The incident happened a day after a settler rampage in the occupied West Bank resulted in the death of one Palestinian, escalating the cycle of violence that has engulfed the area for the past 1.5 years.
Palestinian Qusai Jamal Maatan, 19, was slain by Israeli settlers in the West Bank community of Burqa. According to Israeli authorities, they detained two Israeli settlers in connection with the violence.
Earlier on Friday, an Israeli dawn incursion into the occupied West Bank resulted in the fatal shooting of Mahmoud Abu Sa’an, an 18-year-old Palestinian.
Israeli opposition figure Yair Lapid claimed that violent settler attacks in the West Bank put other settlers in danger, referring to the majority of them as “law-abiding civilians.”
The largest Israeli offensive in the occupied West Bank in nearly 20 years took place last month in the refugee camp in Jenin. The attack resulted in the deaths of twelve Palestinians, including at least eight combatants, and one Israeli soldier. It also led to the evacuation of thousands of people and the destruction of substantial portions of the camp.
Since Israel started conducting nearly nightly incursions into Palestinian areas at the beginning of last year, tensions in the occupied territory have risen.
In the occupied Palestinian areas, including the West Bank, and the Gaza Strip, more than 200 Palestinians have been slain this year.
Since the United Nations started keeping count of fatalities in 2005, this year has already been the bloodiest for Palestinians.
The West Bank, the Gaza Strip, and East Jerusalem were all taken by Israel during the Middle East conflict of 1967. For their envisioned sovereign state, the Palestinians covet those areas.