"There is no place in Iran that the long arm of Israel cannot reach. And that's true of the entire Middle East. Far from being lambs led to the slaughter, Israel soldiers have fought back with incredible courage and with heroic sacrifice," Netanyahu said.
"We are winning," he added, after bombing attacks widely attributed to Israel and air strikes across Lebanon targeting Iran-backed Hezbollah killed over 600 people people.
Shortly after his speech, Israel launched its biggest air strike since a 2006 war on Beirut in what military officials said was an attack on Hezbollah's headquarters.
Netanyahu spoke in Biblical terms about the stakes for Israel in the region, between normalization agreements with moderate Arab states and more war with Iran and its armed allies.
"Moses told us that our actions will determine whether we bequeath to future generations a blessing or a curse, and that is the choice we face today, the curse of Iran's unremitting aggression, or the blessing of a historic reconciliation between Arab and Jews."
Netanyahu on Thursday appeared to brush off an initiative by the US and other world powers for a 21-day ceasefire between the Jewish state and Iran-backed Hezbollah, saying military operations would continue with "full force".