The Trump administration dramatically ratchetted up its rhetoric by threatening sanctions if the court pursues investigations against the U.S., Israel or other allies.
"Israel supports the American actions that are meant to clarify to the Palestinians that their refusal to negotiate and attempts to attack Israel in global forums will not promote peace", he said in a statement at the end of Jewish New Year holiday.
The Trump administration had told the Palestinians last November that closure could be expected unless they agreed to sit to down with the Israelis.
France, Germany, Italy, Spain and the United Kingdom said on Monday its strategic location is important to maintain "contiguity of a future Palestinian state".
Palestinian authorities will not be deterred from seeking International Criminal Court action against Israel, an official said on Monday, despite the Trump administration's plan to shut their de facto embassy in Washington in response.
On Monday, John Bolton, national security adviser to Trump, attacked the ICC, threatening to sanction judges and other officials if they moved against USA soldiers or those of key allies.
The Palestine Liberation Organization is the group that formally represents all Palestinians.
Secretary General of the PLO Executive Committee, Dr. Saeb Erekat on Tuesday said that the Palestinian leadership has submitted the case of Khan Al-Ahmad to the International Criminal Court in the Hague.
The Palestinian government, in a statement last week, said the razing of Khan al-Ahmar was part of an Israeli plan to create an arc of Jewish settlements that would effectively cut off East Jerusalem from the West Bank, areas captured in the 1967 Middle East war.
"Weaponizing humanitarian and developmental aid as political blackmail does not work", Ambassador Husam Zomlot said.
Alarmed by this trajectory, Americans for Peace Now (APN) calls on the few remaining responsible members of the Trump administration's foreign policy team and on Congress to act to reverse this disastrous trend and preserve any remaining chance for viable peace between Israel and its Palestinian neighbors.
Trump has since pledged to withhold aid from the Palestinians until they return to the negotiating table.
"This American administration has adopted wholesale all the positions of the most extreme, rightwing, hardline, racist Israeli government in the history of Israel", Ashrawi said. Led by Jared Kushner, Trump's son-in-law and a senior aide, White House officials have been preparing a peace proposal they intend to put forward at an unspecified time.
In making such moves, Trump has sided with Israel on core issues in the conflict without publicly asking for any concessions in return. However, such a deal is unlikely given Palestinian mistrust of his administration.