Israel's PM Benjamin Netanyahu said his government would distribute more guns to Israeli citizens, following the attack by Palestinian militants.
ADVERTISEMENTHamas has claimed responsibility for a gun attack in Jerusalem that killed three people and left eight others wounded.
The Palestinian militant group called for an "escalation of resistance against Israel."
Two brothers from East Jerusalem "sacrificed themselves by carrying out an operation" Hamas said in a statement.
Israeli police confirmed the gunmen had been shot and killed.
Authorities say the men were driving a car, one armed with an M-16 assault rifle and the other with a pistol, firing on the bus stop in West Jerusalem during rush hour.
Footage broadcast by Israeli television showed two men getting out of a white car and opening fire before being shot dead.
Israel's Shin Bet security agency identified the brothers as 30 and 38-year-old. Both were affiliated with Hamas and had previously been jailed in Israel.
"The operation came as a natural response to unprecedented crimes conducted by the occupation," Hamas said in a statement, citing Israel's military offensive in Gaza and the treatment of Palestinian prisoners.
US Secretary of State Anthony Blinken, who arrived in Tel Aviv on Wednesday evening, said the attack was a reminder of "the terrorist threat that Israel faces on a daily basis."
In a statement, Israel's Prime Minister Benjamin Netanyahu congratulated the two soldiers and the civilian who intervened at the scene of the attack. "My government will continue to extend the distribution of weapons to citizens", he said.
In mid-November, an Israeli soldier was killed and five members of the Israeli security forces injured in an attack at a roadblock separating Jerusalem from the West Bank, a Palestinian territory occupied by Israel since 1967.
The attack was claimed by the Ezzedine al-Qassam Brigades, the armed wing of Hamas. The three assailants were shot dead.