March 18 (UPI) -- Netanyahu made the remarks a day after a gunman began stabbing in the Israeli West Bank settlement of Eli. Two people -- an Israeli soldier and a rabbi -- died. A third victim, a 19-year-old Israeli soldier, was seriously injured.
The dead were identified as Israeli Staff Sgt. Gal Keidan, 19, and Rabbi Ahiad Ettinger, 47. Thousands attended memorials for both victims Monday.
Israeli authorities identified the suspect as a 20-year-old Palestinian man.
"We know the terrorist's identity," Netanyahu said. "The IDF, Shin Bet and security forces are in close pursuit after him. We also know where he lives, [and] we located his family.
"I gave instructions ... to begin demolishing his home and preparations have already begun. These terrorists will not uproot us from here - the exact opposite will occur."
Netanyahu said Monday terrorism won't deter the Israeli government from building more settlements in the West Bank town of Ariel -- an issue that's caused great conflict.
Though the units were approved two years ago, their construction is a symbol Israel won't be discouraged, Netanyahu said.
"The two people who were killed were wonderful people, I am told," he added. "The more they afflict us the more we will grow and flourish. Our power is tremendous."