JERUSALEM (AP) — A third Israeli has died following the attack by a Palestinian man who opened fire into a crowded bar in central Tel Aviv.

Two other people were instantly killed in the Thursday evening shooting. It occurred in an area packed with people in bars and restaurants.

Israeli security forces say the attacker was tracked down following an overnight manhunt and killed in an exchange of fire.

"Every murderer knows we will find them, everyone who helps a terrorist should know that they will pay a heavy price," Israeli Prime Minister Naftali Bennett said.

It was the fourth deadly attack in Israel by Palestinians in less than three weeks and came amid heightened tensions around the start of the Islamic holy month of Ramadan.

Tens of thousands attended Friday prayers in Jerusalem, with no immediate reports of unrest.

The U.S. condemned the attacks, calling them "senseless terrorism and violence".