Israeli media report a group of Jewish students attacked and beat two Palestinians in Jerusalem, hours after a Palestinian man rammed a bulldozer into dozens of cars and injured 16 people.

Witnesses say the Palestinian men were beaten and bleeding when they stumbled into the home of a Jewish family late Tuesday.

Family members say they protected the men, while some onlookers urged the group to kill any Jews who protected the Arabs.

One family member says he was stabbed in the attack.

A rabbi from a nearby yeshiva (school for religious study) condemned the attack, and said none of his students were involved.

The attack came hours after a Palestinian man rammed a bulldozer into dozens of vehicles in Jerusalem, injuring 16 people.

Police and a bystander shot and killed the a 22-year-old man, Ghassan Abu Tir, from east Jerusalem.

Authorities have called the incident a terrorist attack. 

Israeli President Shimon Peres and Palestinian President Mahmoud Abbas condemned the attack, as did Democratic U.S. presidential candidate Barack Obama, who arrived in Jerusalem hours after the rampage occurred.

Obama said Tuesday the attack was a reminder of why officials must work diligently, urgently and in a unified way to defeat terrorism.

The attack occurred near a hotel where Obama is staying.

It was the second Palestinian bulldozer attack in Jerusalem this month.

The attack coincided with the first visit of a Palestinian president to the official Jerusalem residence of Israel's president.  Officials said the talks Tuesday between President Abbas and President Peres focused on promoting the peace process and joint economic projects.