The 70-year-old comedian, best known for his sitcom Seinfeld, was on stage at the Qudos Bank Arena last night when his set was disrupted.
A man could be heard chanting, “From the river to the sea, Palestine will be free,” in videos posted on social media.
Seinfeld shot back at the heckler.
“We have a genius, ladies and gentlemen,” he said.
“He solved the Middle East.
“It’s the Jewish comedians, that’s who we have to get.
“They’re the ones doing everything.”
As security moved in to remove the protester, some members of the crowd chanted “Jerry” before the American addressed the man directly.
“They’re going to start punching you in about three seconds, so I would try and get all of your genius out,” he said.
“It’s a comedy show, you moron.
”You’re really influencing everyone now, we’re all on your side, you made your point so well.
“You’ve come to the right place for a political conversation.
”Tomorrow we will read in the paper, ‘Middle East 100 per cent solved thanks to man at the Qudos Arena stopping Jew comedian.’
“They stopped him, and everyone in the Middle East went, ‘Oh my god, let’s just get along, we can do that.’
“‘Cause I know we have problems here with the Indigenous Aboriginal people and the white people so maybe to solve that I will screw up (Australian comedian) Jim Jeffreys at in a show in New York.
“If that works, this will work.
“You have to go 20,000 miles from the problem and screw up a comedian, that is how you solve world issues.”