"I wouldn't want to suggest that I know about the attack today, but clearly that's been one of the stated and continuous purposes of Iran, to harm Israel," said Rumsfeld, speaking at a press conference with his Italian counterpart Antonio Martino.

"We know that Iran has been on the terrorist list. We know that Iran has been assisting Hezbollah and other organizations and moving equipment and people down through Damascus into Beirut and down into positions where they can attack Israel for years and years and years and years," he said.

The attack in the Israeli city of Netanya was the first suicide bombing inside Israel in four and a half months. At least three Israelis as well as the bomber were killed in the blast.

Palestinian leader Mahmud Abbas slammed the bombing, claimed by Islamic Jihad, as "a terrorist attack" and vowed to punish the perpetrators.

Israel said the attacks proved the Palestinian Authority is "doing nothing to stop terrorism".

The White House also demanded the Palestinian Authority "act to dismantle terrorist organizations and to stop attacks from happening in the first place."