With Israel not taking the deal, the US Veto in the UNSC is off the table too. No US Veto clears the way for a UNSC Chapter 7 resolution against ALL of THE illegal settlements in ALL of THE occupied territories. This will form the defacto borders of a second resolution recognizing the State of Palestine. Giving up this deal means Israel is giving up on having a role in negotiating the State of Palestine. Either take the deal, or the first resolution will be in front of the UNSC within 4 months. No one on the UNSC is going to vote against Chapter 7 action against the illegal settlements. All of them have already said they are illegal.
Australia's most dangerous Islamic State operative killed in U.S. strike (AP)
from the article: Cabinet stalls on settlement freeze as Israel and U.S. clash over terms