Shots were fired at a Egged bus on Route 12, which connects Mitzpe Ramon to Eilat, according to reports received by Magen David Adom on Thursday afternoon.
The bus, line 392, was fired upon by a long-barreled hand gun from a vehicle carrying three terrorists. The driver avoided further damage by continuing to drive instead of breaking.
The terrorists escaped in the direction of the Egyptian border. Police helicopters are now trying to locate them.
Six people were lightly injured by shots and four were moderately injured. The paramedics arrived on the scene and are taking the victims to Yoseftal Hospital in Eilat.
The incident took place in a military zone, police said.
Eilat sub-district police have set up road blocks throughout the entire area, including at the entrance to Eilat, as part of police efforts to assist the IDF in capturing the gunmen.
It remained unclear whether the shots were fired from Egypt or whether gunmen had infiltrated the border.
The IDF was considering three possible scenarios for the attack.
One possible scenario was that terrorists, either from Egypt or possible from Gaza, fired from across the Egyptian border but did not cross into Israel.
A second option was that gunmen crossed into Israel, made the attack, and are still in Israel. This option prompted the IDF to set up checkpoints throughout the area.
The final scenario being considered was that the terrorists crossed into Israel, fired on Egged bus, and then fled back over the border near the Netafim crossing.
While the government has been working on completing a border barrier on the border along the Sinai peninsula, it has not been completed, and therefore large areas remain open and have been utilized for infiltration.