The Jerusalem Magistrates Court on Thursday extended by five days the arrest of Lieutenant Colonel (res.) Amos Doron, who is suspected of arson near the Prime Minister's Residence.
An additional suspect, aged around 80, was released to house arrest after claiming that he was not present in the area at the time of the incident.
As a result of the arsons, severe damage was caused to a car parked nearby, and residents of nearby buildings were forced to evacuate their homes. Police stressed that no one was injured.
The car was later identified as belonging to an active-duty reservist and his wife.
Police and firefighters were called to the scene of a left-wing demonstration on Wednesday morning to extinguish the flames and prevent additional risk to residents and commuters. Initial investigations show that the suspects, residents of both Jerusalem and central Israel, arrived at the Rehavia neighborhood and set garbage bins on fire.
One of the suspects has been indicted in the past for setting fire to a tire and rolling it in Jerusalem during a protest against judicial reform.