Visiting the scene of the attack on January 2, Benjamin Netanyahu demanded “loyalty to the state’s laws from everyone”.
Police have named a 29-year-old Israeli Arab as the suspect. No motive has been established for the shooting.
Seven people were also wounded, four of them seriously, in January 1 attack outside the bar.
Security forces are on “heightened alert” and are searching for the gunman who is still at large, police said on January 2.
Visiting the bar in Dizengoff Street, Benjamin Netanyahu praised Israeli Arab leaders for condemning the killings – but said Israel was in danger of becoming “a state of law for most citizens, and a state within a state with Islamist incitement and illegal arms that are often used in weddings, celebrations and criminal incidents”, the Jerusalem Post reports.
Benjamin Netanyahu said his government would “bolster law enforcement efforts in the Negev, the Galilee, the Triangle, everywhere”. This would include building new police stations and recruiting more police officers.
The attack took place in a busy part of Tel Aviv city center filled with bars and cafes.
Security camera footage showed the gunman taking an automatic rifle out of his backpack and then firing at least 15 shots at people in the street before fleeing the scene.
The two victims have been identified as Alon Bakal, 26, who was a manager at the bar targeted, and Shimon Ruimi, 30.
The suspect, from northern Israel, had stolen the gun from his father, who works in security, Haaretz newspaper reported.
The father recognized his son from media reports and contacted the police, the newspaper said.
Tel Aviv shootings follow a wave of Palestinian attacks against Israelis over the past few months.
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