NEW : Veto ` ` encourages further Israeli intransigence , '' observer of Israel ' . The veto is the first to be used by the U.S. under the Obama administration . U.S . Ambassador to Israel : It 's unwise for Security Council to try to resolve key divisive issue . The Palestinian proposal aimed to make Israeli settlements in the West Bank illegal .
NEW : Veto `` encourages further Israeli intransigence , '' observer of Palestine says . The veto is the first to be used by the U.S. under the Obama administration . U.S . Ambassador to U.N. : It 's unwise for Security Council to try to resolve key divisive issue . The Palestinian proposal aimed to declare Israeli settlements in the West Bank illegal .