Striker Lyndon Dykes scored a VAR-awarded penalty in the 29th minute in Vienna as the Scots moved into second place in Group F behind runaway group leaders Denmark.
Scotland have 11 points from six games, one more than Israel, who lost 5-0 against the Danes in Copenhagen and visit Hampden Park next month for what is sure to be a sell-out.
After the visit of Israel, the Scots are away to the Faroe Islands and Moldova before finishing the campaign with a home game against Denmark and second place and a play-off spot is now, on the face of it, within grasp.
Boss Clarke said: "Every player was outstanding.
"We have come a long way. I think we can get better, I think we will get better and last night is another step on that road.
"It was no surprise to me.
"They are a really good group of players who want to be successful for their country and they showed that. So it was good.
"It just means (Israel) is another cup final. You have to keep picking up points.
"It was an important night for us to get something from the game.
"We managed to come here and put in a good performance, a good footballing performance when we got the ball down we passed it well.
"We are not a long ball team as some people try to label us.
"We can play. If we have to go long we can play and fight for it.
"If we have to make the passes we make the passes.
"We deserve a little bit more respect."