Israel has accused Iran of trying to take out terror attacks on Israeli diplomats. Prime Minister Benjamin Netanyahu said that "Iran and its client Hezbollah," were behind Monday's attacks adding "Iran [is] the world's greatest exporter of terror."

Four people were hurt in the incident, TV channels reported. Israeli embassy spokesman David Goldfarb said the car was near the embassy when the blast went off on Monday.

The incident took place at about 500 meters away from the PM's residence. The incident occurred at 3.15pm (IST). Initial reports said the balst was from a CNG cylinder but eyewitnesses say they heard a very large blast with police confirming explosives have been used.

Eyewitnesses say seconds before blast motorcycle driver attached something onto car in New Delhi and then the explosion took place moments later.

Netanyahu said "In the last few months we have witnessed several attempts to target Israeli citizens and Jews in a series of countries, such as Azerbaijan and Thailand. In all of these cases we were able to thwart these attacks in cooperation with local forces," Netanyahu said.

He added that "the Israeli government and its security services will continue, with local security, to act against the international terror which Iran produces."

An explosive device was thwarted in Tblisi, Georgia whilst arrests were made in Baku and another attack prevented in Bangkok.