Anti-Arab graffiti was spray-painted on a car and the tires of 30 other vehicles were slashed on Wednesday in the central town of Jaljulya.
The graffiti reads "Arabs beware," warning Arab men to stay away from "my sister," referring to Jewish women.
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While hate crimes targeting Palestinians are relatively common in the West Bank, this is a rare case within Israel's borders.
Police have launched an investigation into the crime. This is the second incident in Jaljulya in the last two years.
A similar incident occurred this week in the neighboring Kafr Qasem, when tires were punctured and graffiti spray-painted in the city.
Samah Darwish, the director of the Israel Religious Action Center's Racism Crisis Center, accused the police of neglecting investigations into anti-Arab attacks. "We call on law enforcement agencies to come to their senses and act in any way possible to eradicate this despicable phenomenon," she said.