"I want special forces, task forces," Netanyahu suggested, after indicating that the crime wave would likely spread to Jewish localities soon.
96 Arab Israelis were killed and hundreds were wounded in violent crimes in 2020.
During the operation, large stockpiles of weapons, equipment and ammunition were found in Shuafat.
The border police were prepared to catch the suspects after receiving intelligence information on a suspicious vehicle containing weapons.
Two M-16's and an airsoft gun along with 15 magazines and hundreds of bullets were seized. The driver's wife, young daughter and days-old son were in the car.
The court convicted Roman Frank of committing three weapons offenses (import, carry, and transport) and of acceptance under false pretenses.
During searches in Beit Ummar, northwest of Hebron, security forces found a cache of illegal weapons.
"Police and border police operators will continue in all areas to prevent attacks and illegal criminal activity connected to weapons," the police said in a statement.
The victim was identified as Muhammad Saadeh, 45, the imam of the Tawhid Mosque.
"This is a very serious incident, in which the immunity and privileges granted to foreign missions in Israel was cynically exploited in order to smuggle dozens of weapons..."