A peaceful future between Israelis and Palestinians is now in "jeopardy," according to US Secretary of State John Kerry.
Explaining why America did not veto a UN resolution demanding an end to Israeli settlement building, Kerry said the US could not have done it "in good conscience".
Kerry said the resolution made clear both Israel and the Palestinians needed to act now to "preserve the possibility of peace".
He added there is "still a way forward if responsible parties are willing to act".
Downing Street said it was "not appropriate" for John Kerry to brand the Netanyahu administration as the "most right wing in history".
The Israeli prime minister said the country would stop funding for a number of UN bodies deemed as 'hostile' to Israel.