The UN Security Council resolution called for Israel to stop building settlements on occupied Palestinian land, including East Jerusalem, declaring the settlements "illegal".
It was picked up and sponsored by New Zealand and three other countries after US President-elect Donald Trump reportedly pressured Egypt into dropping it.
It was passed on Saturday after the US abstained instead of vetoing, as they historically have done on votes concerning Israel.
In the aftermath, Israel has withdrawn its ambassador to New Zealand and barred New Zealand's ambassador to Israel.
Netanyahu lashed out at other Security Council countries by curbing diplomatic contacts, recalling envoys, cutting off aid and summoning the US ambassador for a scolding. Netanyahu has publicly called it a "shameful anti-Israel resolution".