Two Jews were wounded in a terrorist shooting attack in eastern Jerusalem Tuesday morning.

The attack took place on Pierre Van Paassen Street in the Shimon Hatzaddik neighborhood of the capital.

Witnesses say they victims are Breslover Hasidim who were gunned down while sitting in their car in front of the Tomb of Shimon Hatzaddik.

Police investigated preliminary reports suggesting the attack was a drive-by shooting, finding the claim to be unjustified.

Authorities say a single terrorist approached the victims' car, opened one of the doors, shot at the victims, then fled towards the Arab neighborhood of Sheikh Jarrah, which borders Shimon Hatzaddik. The terrorist dropped the gun while fleeing the scene, and police have recovered the weapon.

Large numbers of police and Border Police officers have been dispatched to the area and are conducting searches for the terrorist.

MDA and United Hatzalah emergency first responders were dispatched to the scene to treat the wounded.

The victims were then evacuated via ambulance to Shaare Zedek Medical Center and Hadassah Mount Scopus Medical Center.

Both of the victims are listed in moderate condition.

"The victims were hit by gunshots while travelling in a vehicle," MDA paramedic Nir Buzaglo said. "They continued driving and stopped alongside a police car and reported the incident."

"We were quickly on scene with large numbers of MDA teams, one of the victims was lying on the street and the other was walking nearby, they were fully conscious with bullet wounds to their upper bodies. We provided primary medical treatment, stopped the bleeding, placed bandages and gave medications, and evacuated them in MDA MICUs to hospitals, in moderate condition and fully conscious."

United Hatzalah volunteer EMT Yechiel Stern said: "I was near the tomb of Shimon HaTzadik and received reports of gunfire. I arrived at the scene within a few seconds and provided initial treatment to two people who were in moderate condition."