Building on occupied land is not an "internal issue", but an international one. The West Bank does not belong to Israel, so it is strictly forbidden to settle its civilian population on it. This is not up to Israel, nor the US to decide, but to International bodies, such as the UN, or even better, the ICJ. If 14 out of 15 UNSC members vote against Israel, don't you think that it might just be because Israel is grossly on the wrong here, and not some dark islamist conspiracy?
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Border Police detain Palestinian carrying knife near Tomb of the Patriarchs in Hebron (Haaretz)
from the article: With settlement resolution veto, Obama has joined Likud