Police chief Roni Alsheich described the truck-ramming as a terror attack. The assailant, a resident of East Jerusalem, was shot and killed, the police chief said, adding that there was no advance warning for the attack.
Netanyahu says all signs point to assailant, a resident of East Jerusalem who was shot and killed, being an ISIS supporter.
Speaking at the scene of the attack, Prime Minister Benjamin Netanyahu said: "We know the identity of the attacker. All signs point to the attacker being a supporter of the Islamic State."
Referring to similar vehicle ramming attacks in Europe, in Nice in July and in Germany last month, Netanyahu minister said there may be a link between them and Sunday's attack, "from France and Berlin and now Jerusalem."
The prime minister said a number of steps were being taken that he would not specify in detail "to ensure that such incidents are not repeated."