At least one person was killed and two seriously injured in a car explosion in Kiryat Yam, near Haifa, on Wednesday night, a Rambam Health Care Campus spokesperson confirmed.

A 30-year-old man and a boy, approximately 13 years old, were taken to the hospital in serious condition, suffering from multi-system injuries, the hospital stated.

The man who was killed was approximately 40 years old, according to a Magen David Adom paramedic who was at the scene.

The paramedics arrived, seeing a vehicle emitting smoke and three injured people lying near it. The 40-year-old was taken to a mobile intensive care vehicle, and despite undergoing CPR while in transit to the hospital, was declared dead by responders.

The incident is believed to be criminal in nature, Israel's public broadcaster KAN News reported.

Israel Police are examining the possibility that a bomb that was placed adjacent to the vehicle exploded prematurely, KAN reported.

Local resident: 'I thought it was a missile impact'

A local resident identified as "Dan" described the incident.

"We were sitting at home, and suddenly there was a huge explosion. We were sure it was a missile impact, with all the tension [with Iran] and the whole situation," Dan was cited by N12 News as saying.

"Neighbors came outside, and nobody understood what was happening. Only a while later, did we realize that it was a criminal incident and not a security risk. It does not make the situation any easier, but at least we understood what happened," Dan added.

"We heard a huge boom, went to the window, and saw the vehicle on fire," another resident, identified as "Shoshana," was cited by Ynet as saying,

"It was very scary, quite an explosion, and right next to residential buildings - children riding bicycles in the area. What devastation. A major disaster was miraculously avoided in the heart of the neighborhood," she added.

"It was a huge boom, right here in the small shopping center by a major road," another resident, identified as "Rafael," was cited by Ynet as saying.

"It's scary, look at the vehicle - it was a serious piece of explosives," he added.

This is a developing story.