JERUSALEM — Palestinian cars were vandalised overnight in the Shuafat neighbourhood of Israeli-annexed east Jerusalem, in an attack that bore the hallmarks of a hate crime by rightwing Israeli extremists.

Six vehicles had their tyres slashed and were daubed with slogans in Hebrew reading "Price tag," "Death to the enemy" and "Knitted kippa," a reference to the small crocheted skullcap worn by men of the religious-nationalist Jewish settlement movement, an AFP photographer reported.

Police spokesman Micky Rosenfeld told AFP that more graffiti was found on a wall in the area.

"Price tag" is the name of a revenge campaign by Jewish extremists, for the most part targeting Palestinians and Arabs in response to Israeli government moves against settler outposts.

Such attacks tend to involve the wanton destruction of property and have included arson attacks on cars, mosques and olive trees.