A Palestinian bus driver Friday rammed his bus into a car with military license plates, killing one person, and emerged from his vehicle waving a metal bar before soldiers shot him, police said.

The driver shouted "Allahu Akbar!" (God is great) after crashing into the military car and another vehicle, said Police Inspector Moshe Caspi.Four people were injured in the crashes and treated at a hospital, army radio reported.

The incident occurred less than a mile from an army checkpoint that divides Israel from the occupied Gaza Strip.

Palestinians identified the bus driver as Mohammed Samir Katanani from Gaza's Jabaliya refugee camp, a center of the 3-year-old uprising against the Israeli occupation of Gaza and the West Bank.

Katanani, 30, had taken Palestinians to see relatives at Ashkelon prison in Israel and was driving an empty bus back to Gaza when he hit the Israeli vehicles, Arab reports said.

He was 1 1/2 miles from the checkpoint when he swerved into the left lane, hitting a Renault with army license plates. In the car was an army officer and his family, Caspi said on Israel army radio.

An army statement initially said the wife of an army major was killed, but later reports said the victim was his sister-in-law. Israel radio identified her as Sigal Alon, 21.

Avi Pazner, a top aide to Prime Minister Yitzhak Shamir, noted the incident followed a U.N. Security Council vote earlier Friday condemning the killings of six Palestinian civilians by Israeli security forces over the weekend.

"I want to note especially that this incident comes in the wake of another resolution of the Security Council condemning Israel, and that this resolution only encouraged violence and terrorism," Pazner said.