Analysis
Israeli newspapers show a dramatic photograph of the tourist bus in flames, injured people covered in blood and shocked Israeli holiday-makers. "Terror on vacation" is the headline of Israel Hayom, while Yedioth Ahronoth has "Target: Israelis". A column in the daily Maariv questions whether this is "Iranian Revenge".
Prime Minister Benjamin Netanyahu was quick to point the finger at Israel's arch-enemy. He also claimed this was the latest in a series of Iranian attempts to harm Israelis and Jews overseas - in Thailand, India, Georgia, Kenya, Cyprus and other locations.
Other Israeli officials have made specific links to Hezbollah, the Iranian-backed Shia militant group based in Lebanon.
Iran's state TV has rejected accusations of Tehran's involvement. However, this bombing does look set to escalate a shadow war with Israel. The Iranians blame Israel for the killing of several scientists associated with its controversial nuclear programme.
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