Israeli settlers yesterday punctured the tyres of several Palestinian-owned vehicles and sprayed anti-Arab graffiti on walls and vehicles in the town of Kafr Qasim, in northern Israel.
The attackers sprayed slogans calling to expel or murder Palestinians.
Israeli settlers have, in recent years, carried out similar attacks in the occupied West Bank and Arab cities and towns in Israel in what has become known as "price tag" attacks.
The term refers to extremist Jewish settlers' use of violent acts on Palestinians and their property to demonstrate their opposition to Israeli restrictions on settlements and their outposts in the occupied West Bank.
Israeli police said it has received complaints of vandalism, adding that forces were investigating the incidents.
Palestinians living in Israel accuse Israeli police of negligence in prosecuting perpetrators of such attacks.
Arab Israelis constitute about 20 per cent of Israel's population.