A masked man barged into a local pub in the southern city of Be'er Sheva and began throwing cannabis at diners before escaping in a getaway car that waited outside.
"Close to midnight, a car parked in front of the restaurant, and a masked man came out holding a white bag in his hand," said Ilan Zagdon, owner of Bar Ilan.
"He ran into the pub, reached into the white bag, and pulled out a handful of joints he threw at all the diners sitting there."
The owner said the atmosphere was tense since many thought it was a terrorist attack. "We didn't understand what was going on, and when we picked up one of the small bags, we saw it was cannabis. The whole thing lasted about two minutes."
After handing out all his wares, the man dashed to the door, yelling "I'll be back" on his way to the getaway car.
Zagdon said he believed the incident was a marketing stunt by a drug dealer to lure students from the nearby university.
"A lot of students hang out in our pub, and since law enforcement began to crack down on drug dealers on Telegram, maybe dealers began to arrive physically to businesses where young people hang out," he said.
"When I told the police what had happened, they didn't believe me, it sounded very surreal to them. I think it's a story that must be told. We live in Be'er Sheva, all of us were sure it was a terror attack, it was very frightening."
Israel Police said in response that "upon receipt of the complaint, an investigation was launched into the incident."