Two cars owned by Arabs were set on fire near the eastern Jerusalem neighborhood of Gilo.
The words “price tag” and “revenge” were spray painted near the site of the suspected arson attack, which occurred early Wednesday morning.
No suspects have been identified, but the graffiti is typical of other attacks by extremist right-wing Jews.
At least three mosques in the West Bank and Jerusalem have been torched in recent weeks. Similar graffiti was left at the sites of those attacks. Jewish settlers were arrested in connection with at least one of the attacks.