The United States has allowed the UN Security Council to adopt a resolution demanding an end to Israeli settlements, defying pressure from President-elect Donald Trump, Israel and some US lawmakers who urged Washington to wield its veto.
An abstention by the US paved the way for the 15-member international body to approve the resolution, with 14 votes in favor, prompting applause in the council chamber.
"Israel rejects this shameful anti-Israel resolution at the UN and will not abide by its terms," the office of Prime Minister Benjamin Netanyahu, who has encouraged the expansion of Jewish settlements in land captured by Israel in a 1967 war with its Arab neighbors, said in a statement.
The Obama administration's action broke with the long-standing American approach of shielding Israel, Washington's long-time ally that receives more than $3 billion in annual US military aid, from such action.
The United States, along with Russia, France, Britain and China, has veto power on the council.
The resolution, put forward by New Zealand, Malaysia, Venezuela and Senegal a day after Egypt withdrew it under pressure from Israel and Trump, was the first adopted by the council on Israel and the Palestinians in nearly eight years.
UN Secretary-General Ban Ki-moon welcomed the resolution and Russian UN Ambassador Vitaly Churkin called on Israel to "respect international law."
The US abstention was seen as a parting shot by outgoing President Barack Obama, who has had an acrimonious relationship with Netanyahu and whose efforts to forge a peace agreement based on a "two-state" solution of creating a Palestinian state existing peacefully alongside Israel have proven futile.
His administration has argued that continued Israeli settlement building has undermined chances of a peace deal.
Israel and Mr Trump had called on the Obama administration to veto the measure.
Mr Trump wrote on Twitter after the vote, "As to the UN, things will be different after Jan. 20th," referring to the day he succeeds Obama.
As to the U.N., things will be different after Jan. 20th.
— Donald J. Trump (@realDonaldTrump) December 23, 2016
Israel for decades has pursued a policy of constructing Jewish settlements on territory captured by Israel in a 1967 war with its Arab neighbors including the West Bank, Gaza and East Jerusalem.
Most countries view Israeli settlement activity in the West Bank and East Jerusalem as illegal and an obstacle to peace. Israel disagrees.
The Obama administration has deemed settlement expansion "illegitimate." Successive administrations of both parties have criticized settlement activity but have done little to slow their growth.
White House defends US abstention
The Palestinians want an independent state in the West Bank,Gaza and East Jerusalem.
The resolution demanded that Israel "immediately and completely cease all settlement activities in the occupied Palestinian territory, including East Jerusalem" and said the establishment of settlements by Israel has "no legal validity and constitutes a flagrant violation under international law."
After the vote, the White House defended the US abstention, saying that in the absence of any meaningful peace process, Mr Obama took the decision to abstain.
Criticizing Israel's settlement policy, it said it had repeatedly warned Israel privately and publicly that settlement activity was increasing Israel's international isolation.
Ben Rhodes, White House deputy national security adviser, dismissed Mr Trump's criticism, noting that Mr Obama remains president until 20 January.
"We could not in good conscience veto a resolution that expressed concerns about the very trends that are eroding the foundation for a two-state solution," Mr Rhodes told a conference call.
Samantha Power, the US ambassador to the United Nations, said the US did not raise a veto because the resolution "reflects the facts on the ground and is consistent with US policy across Republican and Democratic administrations."
UN vote a 'big blow' to Israel - Palestinian policy
Palestinian officials have described the vote by the UN Security Council as a "big blow" to Israeli policy and a "historic day".
"The Security Council decision is a big blow for Israeli policies," said a spokesperson for the Palestinian presidency.
The move was "an international and unanimous condemnation of settlements and strong support for the two-state solution," he told AFP.
Israel's envoy to the United Nations, Danny Danon, said in New York that his government had expected its US ally to veto "this disgraceful resolution".
Before the vote an Israeli official, who spoke in Jerusalem on condition of anonymity, had said that US President Barack Obama and Secretary of State John Kerry were "behind this shameful move against Israel at the UN".