The Bosnian Serb leader, indicted by the UN war crimes tribunal on 15 counts including genocide, had been on the run for 13 years.
Tuesday's incident appears to mark the third time this year that Palestinians inside Jerusalem have been involved in attacks on Israelis.
Media coverage favors Obama, his campaign says.
The Democratic presidential nominee, who delivers the sole public foreign policy speech of his overseas tour here Thursday, was dubbed 'president of the world' by Der Spiegel.
Each side has domestic reasons to prolong the conflict.
Senator Obama is an unknown quantity as he tours the Middle East.
After issuing landmark ruling, the Supreme Court has yet to clarify the appeals process for more than 275 Guantanamo detainees.
Obama likely to return US to role of 'honest broker.' McCain sees fighting Islamic extremists as paramount.
More than ever, vice presidential wannabes must maneuver between groveling and remaining cool.