But other workers in the industrial zone suggested the attack was carried out by a disgruntled employee and was not politically motivated. "We know he is still armed and considered risky", he added.
Israeli media said the shooter was a former worker at the factory before he was sacked recently.
"Israel ... is incapable of protecting anyone that steals the Palestinian land", the leader said. The prime minister said he was certain the perpetrator would be caught and brought to justice. On Friday, three Palestinians, including a 13-year-old boy was killed during protests in the Gaza strip and the Jewish state. They were shot dead by a Palestinian gunman at the Barkan Industrial Park near the settlement-city of Ariel.
Hamas claimed responsibility for the West Bank murder, setting off a mass Israeli response against the group. The second woman was moderately wounded and taken to a nearby hospital for treatment.
Security forces launched a manhunt for the shooter, who fled the scene after the attack.
Saudi journalist disappears from consulate in Turkey
The consulate said it was working with the Turkish government to "uncover the circumstances" of his disappearance. He left Saudi Arabia that year over fears of the Riyadh regime's crackdown on critical voices.
Israeli media reported that those killed were found shot to death on their office floor with their hands bound.
Speaking at the beginning of the weekly cabinet meeting, Benjamin Netanyahu called the shooting "a very severe terror attack".
The attack happened in a factory at the Barkan Industrial Park, in the north of the West Bank, early Sunday, according to Israel Defense Forces (IDF) spokesman Lt. Col. Jonathan Conricus.
"Before the shooting [on Sunday], we would enter [Barkan] in 15 minutes; now I have to wait at the entrance of the industrial zone for an hour and a half before I can to get to work", Muayed Amer, a Palestinian laborer, told Anadolu Agency.
Such an attack against Israel's settlement enterprise threatens an escalated response from the Israeli military and a spiral of events that have previously led to an outbreak of conflict.