The Israeli premier has announced a policy of total war on terrorists.
Ariel Sharon is comparing Israel's campaign to that waged by the United States against Osama bin Laden.
Sharon claims Yasser Arafat is responsible for terrorism against Israel, and says his country will now act with all the means at its disposal.
He said: "Just as the United States acts in its battle against world terror, under the brave leader of President Bush, just as it acts with all its strength, so shall we do - with all the means at our disposal."
He has been speaking before a meeting being held to decide on the response to a spate of suicide attacks and shootings by Palestinian militants.
The series of attacks have killed 26 people in Israel since Saturday.
Meanwhile, in the West Bank, Israeli helicopters have struck a Palestinian police building in the northern town of Jenin, Palestinians said.
Earlier Israeli helicopter gunships fired nine missiles near Palestinian leader Yasser Arafat's headquarters in Gaza City.
About 110 members of the Hamas and Islamic Jihad groups have been rounded up in a sweep that began on Sunday.
The Israeli leader did not say exactly what further steps would be taken, but held Arafat directly responsible. He said Israel would "chase after those responsible for terror: those who carry it out, and those who assist, and they will pay the price."