The Democles sword above Netanyahus head on a single horse hair could make him take a decision on the settlement activities the US would like him to take. The sword thus being the US singning onto a Palestinian state with or without Israeli approval. Israel would be far better of to negotiate with the PLO on all important issues where there already are UNSCR on or be face with having to face international law on every subject without the support(veto) of the US. Legal cases would be brought against the Israeli state in hundreds of countries. Israeli assets siezed and the isolation would be total. "an end to the occupation that started in 1967" is already giving Israel more than anybody envisioned in the 1947 UN Partition Plan for Palestine, but The Geneva Convention is from 1949 regarding "the inadmissibility of acquiring land by force". If Israel doesn't want to negotiate the terms of ending the occupation, maybe this is a way forward. Declare a state, if the US says okay.
U.S. Democratic Sen. Bill Nelson announces support for Iran nuclear deal (Haaretz)
from the article: Palestinian PM: Declaration of statehood just a formality