Hours after the attack, the group announced that "soldiers of the caliphate" had launched the "blessed operation. on a gathering of Jews" and said it would attack again.
Hamas, the Palestinian Islamist group that runs the Gaza Strip, dismissed the IS claim, saying the attackers had come from among its own ranks and those of the leftist Popular Front for the Liberation of Palestine (PFLP).
Israeli policemen examine the scene of the shooting and stabbing attack outside Damascus gate in Jerusalem's old city on June 16, 2017.
According to police, two perpetrators opened fire at a group of police officers who returned fire, and a third stabbed the border policewoman a short distance away before being shot. The terrorists arrived in Jerusalem on Thursday in order to surveil the scenes of the twin terror attacks. She was identified as Hadas Malka, 23, a staff sergeant major. Numerous recent Palestinian attacks in Jerusalem took place in this area.
Israeli security officials did not respond immediately to requests for comment on what the SITE intelligence monitoring group described as the first time Islamic State had claimed responsibility for an attack in Israeli-controlled territory, nor on the attackers' affiliation.
"Instead of condemning the attack, Fatah. issued a statement in which it condemn (s) the officers who killed the terrorists, and praised the murderers as heroes", Netanyahu said.
"The attack was carried out by three Palestinians, two PFLP members and a Hamas member", said Hamas spokesman Sami Abu Zuhri.
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It was the latest bloodshed in a wave of Palestinian attacks on civilians and soldiers that erupted in 2015.
The attack occurred at two separate locations near the Damascus gate of the Old City of Jerusalem.
Muhammad added that this year, one volunteer driver had a heart condition, and imposed only one condition on his passengers: they they pray for him.
"Police security measures are continuing at the Damascus Gate and around the walls of the Old City, with special patrol units and SWAT teams that are arresting suspects and removing individuals from the area to keep it safe", said police spokesman Micky Rosenfeld on Sunday.
The PFLP said its two attackers, 19-year-old Osama Ata and 18-year-old Baraa Ata, were members of the same clan who both spend time in Israeli prisons.
The Palestinian Health Ministry, for its part, confirmed that Baraa Saleh, 18, Adel Ankoush, 18, and Amer Badwi, 31 - all from Deir Abu Mashal village, west of Ramallah, in central West Bank. - were shot and killed by police in Jerusalem.
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