Car plows into crowd and kills baby

• NEW: Baby killed in hit-and-run reportedly American citizen, State Department says


• NEW: Driver shot as he tried to flee and later dies, police and hospital officials say


• Man rams car into commuters waiting at light rail stop in Jerusalem


• Seven others wounded in what's being called an act of terror

Jerusalem (CNN) -- A Palestinian man rammed his car into commuters waiting at a light rail stop in Jerusalem on Wednesday, killing a baby and wounding several other people, Israeli police said.

The driver of the vehicle was shot as he tried to flee, police said. He later died, according to hospital officials.

Israeli police spokesman Mickey Rosenfeld called it an apparent "intentioned event" and terror attack.

The 3-month-old baby girl was one of eight people initially injured in the incident, according to Israeli Medical Services. She later died, according to a tweet posted by Rosenfeld.

"Baby dies of injuries in hospital after this evening's terror attack in Jerusalem," the tweet reads. "Hospitals treating injured in different conditions."

In Washington, the U.S. State Department condemned the attack and said the baby was "reportedly an American citizen, who was killed in this despicable attack."

A surveillance camera captured the horrific scene, which has been posted on social media. It shows a speeding car veering right, cutting across two lanes, mounting the station pavement and plowing through the people waiting at the stop.

A hospital identified the driver as 20-year old Abdulrahman Shallodi, according to the Palestinian-run Silwan Information Center.

Rosenfeld said in a tweet that the driver was an Arab resident of Silwan who had served time in an Israeli prison.

CNN's Erin McLaughlin reported from Jerusalem, and Chandrika Narayan reported and wrote from Atlanta. Tal Heinrich also contributed to this report.