If Netanyahu had to build in Jerusalem, this is an optimal time for him. The US is about to have her Congressional Elections and Obama is politically unable to react slowly. The problem is that the US elections will be over in two and a half weeks, and Obama will remember who undermine the peace process he initiated. Since it is quite clear that Netanyahu is unable to proceed with the peace agreement, Obama will have to use some harsher pressure, and I am sure he will. Netanyahu wins a small tactical move, but is on the way of losing big.
12 Iraqi troops, militiamen killed in multiple ISIS suicide attacks (AP)
from the article: PM's office: Construction plans in East Jerusalem are nothing new