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 weeks, and Obama will remember who undermined the peace process he had 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.
More than 2,000 migrants threaten to break out of Hungarian camp (Reuters)
from the article: PM: New building permits will not affect peace process