Paramedics said an additional 15 people were injured, including six in serious condition.
Police said the attackers shot people waiting at a bus stop, while Israeli media reported the attackers also boarded a bus and opened fire inside.
Police said the attackers were shot soon after the attack began on Monday, but did not immediately respond to a request for comment on the status of the attackers or their identity.
The shooting took place at a major intersection at the northern entrance to Jerusalem, on a road that leads to Jewish settlements in east Jerusalem.
Footage of the attack showed dozens of people fleeing from a bus stop at the busy intersection during the morning rush hour.
Paramedics who responded to the scene said the area was chaotic and covered in broken glass, with people wounded and lying unconscious on the road and a sidewalk near the bus stop.
There was no immediate comment on the attack from Palestinian militant groups.
The war in Gaza has sparked a surge of violence in both the Israeli-occupied West Bank and Israel.
Palestinian militants have attacked and killed Israelis in Israel and the West Bank, while there has also been a rise in settler violence against Palestinians.
While there have been scattered attacks in the past months in Israel, the last deadly mass shooting attack was in October 2024, when two Palestinians from the West Bank opened fire on a major boulevard and light rail station in the Tel Aviv area, killing seven people and leaving many others wounded.
Hamas's military wing claimed responsibility for the attack.
According to police, the two men opened fire in the Jaffa neighbourhood of Tel Aviv, including shooting directly into a light rail carriage crowded with passengers that was stopped at a station.
Data from the UN's humanitarian office says at least 49 Israelis were killed by Palestinians in Israel or the West Bank between the start of the war and July 2025.
In that time, Israeli forces and civilians killed at least 968 Palestinians in Israel and the West Bank.
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