Osama bin Laden warned Iraq's Sunni Arabs against fighting al-Qaida and vowed to expand the terror group's holy war to Israel in a new audiotape Saturday, threatening "blood for blood, destruction for destruction."

Bin Laden's comments offered an unusually direct attack on Israel, stepping up al-Qaida's attempts to use the Israeli-Arab conflict to rally supporters. Israel has warned of growing al-Qaida activity in Palestinian territory, though terror network is not believed to have taken a strong role there so far.

"We intend to liberate Palestine, the whole of Palestine from the (Jordan) river to the sea," he said, threatening "blood for blood, destruction for destruction."

"We will not recognize even one inch for Jews in the land of Palestine as other Muslim leaders have," bin Laden said.