Benjamin Netanyahu describes the incident as "the terrible price of anti-Semitism and the wild accusations against Israel".
He says he has ordered strengthened security at Israeli embassies around the world.
Israel's President Isaac Herzog says he is devastated but promises that "terror and hate will not break us", according to a statement.
Would be free
The suspected shooter was seen walking back and forth outside the museum, where he opened fire on a man and a woman, according to police at a press conference.
He then went into the museum where he was apprehended by security guards. In connection with the arrest, the man began shouting "free Palestine", according to the police. The suspect is in his 30s, from Chicago and was not previously known to the police, writes NPR.
The victims had participated in a Jewish event for, among others, diplomats at the museum. They were shot at close range, according to Tal Naim, spokesperson for the Israeli Embassy.
Israel's Ambassador to the USA, Yechiel Leiter, was not himself present at the scene during the incident. He says that the two shot were a young couple, and that the man planned to propose next week in Jerusalem.
According to Kristi Noem, Minister for Internal Security, the deceased worked at the Israeli Embassy.
USA's President Donald Trump calls the incident on his platform Truth Social "obviously anti-Semitic" and that hate and radicalization have no place in the USA.
"So sad that such things can happen! God bless you ALL!", writes Trump.
"We will find those responsible and bring them to justice", writes on X.
The Minister of Justice on the spot
Israel's UN Ambassador Danny Danon describes the incident on X as "a depraved anti-Semitic terrorist act".
"We are convinced that American authorities will take powerful measures against those responsible for this criminal act", he.
USA's Minister of Justice Pam Bondi on X that she is on the spot where the shooting took place.
"Praying for the victims of this violence, while we are trying to find out more", writes she.