A stun grenade was thrown Tuesday night on Hatsivoni Street in the southern city of Ashdod.
Residents heard a loud explosion and alerted emergency forces to the scene.
Magen David Adom (MDA) teams who arrived at the scene identified the object as a stun grenade that had been hurled in the area. There were no injuries, and no medical evacuation was required.
Police opened an investigation into the circumstances of the incident.
According to the suspicion being examined, the incident may be linked to a financial dispute: A haredi businessman who owned a business in Ashdod recently fled abroad after leaving behind creditors with unpaid debts.
Investigators are examining the possibility that the grenade attack is connected to that dispute, but this has not yet been officially confirmed. No suspects have been arrested so far.
The incident took place in a neighborhood populated mostly by haredim, who are not accustomed to such events.
"It happened here, inside our neighborhood," a local resident said. "And it is frightening."
The investigation is ongoing.