The attacker had a small axe in his vehicle but was gunned down before he could use it, Israeli police said.
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The recent focus has been the battle in Ramadi, the capital of Anbar province, which IS militants took in May. Iraqi forces have been preparing to try to take the city back, encircling it.
Two Palestinians were killed in separate attempts to run over Israeli soldiers in a West Bank refugee camp.
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In recent months, Israeli forces have destroyed the family homes of several Palestinians for allegedly attacking Israelis.
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The run-up to the Moscow talks underlined the distance between Moscow and Washington on how to deal with the Syria crisis. The talks between Russian Foreign Minister and US State Secretary John Kerry have started in Moscow .
In one incident that the B’Tselem group studied, a police officer shot two female Palestinian high school students involved in a Jerusalem stabbing attack and continued to fire at them even after they lay on the ground motionless, according to eyewitness accounts and surveillance camera footage.
Mr Abbas was speaking as a poll showed widespread Palestinian support for continuing attacks on Israelis, on a day when a Palestinian from east Jerusalem rammed his auto into a crowded bus stop, wounding nine people before bystanders shot him dead.
“We know who were responsible for carrying out the act, but there is still not enough evidence to try them”, he said.
The violence had come due to “the despair of young Palestinians over the lack of a political horizon for the two-state solution, the [Israeli] invasion of the Al-Aqsa Mosque, and the continuation of settlement building and military checkpoint deployment”, Abbas said in Ramallah on Monday.
Sixty-seven percent back the use of knives, while 66 percent of those asked said an armed intifada or uprising would “serve Palestinian national interests in ways that negotiations could not”, the survey by the respected Palestinian Center for Policy and Survey Research (PSR) found.
The incident in Jerusalem was the latest in a three-month period of near-daily bloodshed.
Nineteen Israelis, as well as one United States citizen, have been killed in Palestinian attacks including stabbings, shootings and auto rammings.
Police spokeswoman Luba Samri says police arrested a suspect in his 30s from the West Bank village of Beit Sira.
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Israeli police spokesman Micky Rosenfeld says the police response has been “proportional”.
