. There's been a bomb attack in the Gaza Strip on a bus taking children to school from a Jewish settlement, and at least two people are reported dead.

The children escaped unharmed.

After the attack, a caller to Israel Radio said it had been carried out by the Hamas Palestinian movement.

Reports say a car drew alongside the bus but was intercepted by an Israeli army jeep.

An explosion occurred and the jeep took the force of the blast.

A soldier and the car driver were killed and several others suffered injuries.

In the confusion, a Jewish settler shot and wounded a nearby Palestinian.

It's the first such incident since Israel and the Palestinians signed their land-for-security deal in Washington.