A further 2,500 settlement units are in the advanced planning stage, with authorities publishing tenders for 800 of them yesterday.
Moscow, which is a strong advocate of a two-state solution to the Israeli-Palestinian conflict, has repeatedly called for the beginning of direct peace talks in order to "find a solution acceptable to all and based on the well-known United Nations decisions".
The law could legalize about half of Israel's settlement outposts, as well as about 3,000 additional homes built illegally in settlements recognized as legal by Israel.
Two Palestinian teenagers were shot and killed by Israeli soldiers on Thursday as violence continues in the occupied territories.
Pence also mentioned that the past 20 years have seen USA administrations and Congress recognize Jerusalem as the capital of Israel but none of them were "brave enough to take a step forward and implement this policy on the ground". Israeli jurisdiction and ownership of Jerusalem, however, is not recognised by the global community.
Wall Street hits new highs on earnings optimism, data
The Labor Department said its Consumer Price Index excluding the volatile food and energy components rose 0.3 percent last month. Among other stocks, Facebook fell 4 percent after the company started changing the way it filters posts and videos on News Feed.
Israel captured eastern Jerusalem - which includes Judaism's holiest sites, the Temple Mount and the Western Wall in the Old City - and the West Bank in the 1967 defensive war, seizing it from Jordanian occupation and reuniting the city.
"This agenda runs counter to Israel's national interest, as well as the interests of everyone who seeks a peaceful future in the region", the statement adds.
Last weekend Israel published a list of 20 organisations that would be banned from entering the country as a result of their support of the Boycott, Divestment and Sanctions (BDS) movement.
"We believe that Israel's stance is not conducive to the creation of conditions for opening the direct talks between the Israelis and the Palestinians during which all the problems relating to the final status should be settled", the statement said.
"The government is attempting to destroy the possibility of a two-state solution and the prospects of peace", Peace Now NGO said.
PA President Mahmoud Abbas has said that after the recognition Americans can no longer play a role as mediators.