Israel Police Inspector General Yochanan Danino said Monday that he expects to make more arrests in the case of the firebombing of a Palestinian taxi that wounded six family members, Israel Radio reported.

During a visit to a school in Nazereth, Danino called the incident "grave" and said it threatens to destabilize a sensitive situation in the area.

Police already detained three suspects - two 12-year-olds and a 13-year-old - all residents of the Bay Ayin settlement in Gush Etzion, south of the capital. The Jerusalem Magistrate's Court on Monday ruled to extend by four days the remands of three minors suspected of involvement in the firebombing of a Palestinian taxi in the West Bank last week.

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The judge said that their was significant evidence to justify the extension of the remands and that he viewed the crime as a grave offense. Police did not publicly detail what the evidence was for fear of compromising an ongoing investigation.

The settlement of Bat Ayin condemned violence against what it termed innocents, but rejected any connection to the attack.

"We are certain that none of our residents had a hand in this grave incident, which goes against all human and Jewish values," a statement said.

Tovah Lazaroff, Ben Hartman and Melanie Lidman contributed to this report.