"Nothing will stop these murderous settler attacks and... we cannot wait until they come into our villages and our homes," Hamas spokesman Hossam Badran wrote on Facebook from his base in Qatar, AFP reported.
"Our people in the West Bank have only one choice: that of open and comprehensive confrontation against the occupation."
Saad Dawabsha died earlier on Saturday in hospital in Beersheba where he was being treated for third degree burns, Palestinian official Ghassan Daghlas said.
Dawabsha's wife Riham Dawabsha and four-year-old son Ahmed are still fighting for their lives in hospital after the arson attack which killed 18-month-old Ali on Friday of last week.
The family's small brick and cement home in the occupied West Bank village of Duma was gutted by the fire and a Jewish Star of David spray-painted on a wall along with the words "revenge" and "long live the Messiah".
Israeli public radio reported on Saturday that the army was on the alert for possible unrest in the West Bank and for "Palestinian revenge attacks."