In his words, traffic has been restricted in central Tel Aviv after the incident, the embassy has also stepped up safety measures.
Degutis said it was still unclear whether the bus was detonated by a suicide bomber or from a distance.
"It all happened next to the embassy, about 500 meters from here. The perimeter has been closed, they say a terrorist or a few of them could be near-by, virtually all central Tel Aviv is blocked, movement of people is restricted to the maximum," the ambassador told BNS on the telephone on Wednesday.
"The situation is indeed rather dramatic. We're taking all security measures we can. We avoid going outdoors and bar people from walking the streets, people are advised to stay away from public places, taking public transport and wandering around in the city," Degutis said.
Israeli authorities said at least 10 people were injured in the explosion, which Prime Minister Benjamin Netanyahu's spokesman said was a "terrorist attack."
