Actually it's both. There is the greater Jehad and the lesser Jehad. In this terminology the greater Jehad is the struggle to submit oneself to Allah. Holy war is the lesser Jehad, though no less a religious obligation. Pretty sanctimonious.
Here, how about Hassan i Sabah, the name of which derives the term 'assassin' - a perfect example of how this craziness is deadly when people are confused about meanings. Hashish, anyone? Another related term.
Clearly, no peace from these fellows.