"We . will come here again and again until his house and all the houses of the people who helped him will be destroyed."
BULLDOZERS
Israel's attorney-general ruled last week that a government move to destroy the house would be legal - but he also noted that it could face further legal challenges.
Israeli armoured bulldozers have demolished hundreds of Palestinian homes in the past decade on the grounds they have been built without permission. Palestinians complain that Israel unfairly denies building permits to Arabs in the occupied West Bank and East Jerusalem, while encouraging Jews to build there.
In the past, the family homes of suicide bombers and other attackers have also been razed. This has been rarer following a sharp decline in such attacks and a 2005 challenge to the practice by human rights groups in Israel's Supreme Court.
Wednesday's attack was the first in the city since another Palestinian with Israeli residence rights in Jerusalem shot dead eight students at a seminary in Jewish west Jerusalem in March.
Israel has effectively sealed off the Gaza Strip and occupied West Bank, building hundreds of kilometres (miles) of wall and fence around these areas to keep potential attackers out. But the roughly quarter of a million Palestinians given Jerusalem residency rights when Israel annexed East Jerusalem and neighbouring West Bank villages have freedom of movement.
That prompted one senior aide to Olmert to suggest hiving off some Arab-populated areas of what Israel currently considers the municipality of Jerusalem. Olmert himself said Israel should destroy the homes of "every terrorist in Jerusalem".
Israel's annexation of East Jerusalem and nearby areas is not recognised internationally and Palestinians are negotiating to have the capital of their future state in the city.
