The United States and the United Nations have expressed disappointment over Israel's decision not to extend a ban on the building of settlements in the occupied West Bank.
The 10-month moratorium came to an end at midnight on Sunday.
A US State Department official said the administration was "disappointed" but would be talking to the parties about the implications of the Israeli decision.
UN Secretary General Ban Ki-moon labelled Israel's actions "provocative".
Palestinian President Mahmoud Abbas said he would respond to Israel's decision after a meeting of Arab leaders in Cairo next Monday, putting off a threatened decision to quit peace talks
Israeli government spokesperson Mark Regev said Israel wants the peace process to succeed.