Next Step: UN Security Council resolution declaring specifically annexation of East Jerusalem as illegal and to return all civilians who have moved in, to be removed. Enforceable by UN Force. This is what will happen if Netanyahu doesn't stop now. Actually, he can't stop because of Shas and Lieberman. So, remove the E. Jerusalem settlers by UN Force and keep the UN Force there to enforce it. US told Netanyahu that they won't veto the resolution. That is why Israeli government panicked. It's classic good cop bad cop strategy.
U.S. weighs sanctioning Russia as well as China in cyber attacks (Reuters)
from the article: Netanyahu leaves U.S. disgraced, isolated and weaker