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US Secretary of State John Kerry on Sunday accused right-wing Israelis of deliberately thwarting efforts to broker a peace deal with Palestinians.
The perpetrators, believed to have come from a Jewish settlement in the Israeli-occupied West Bank, scrawled the word 'revenge' on the house in Hebrew.
Israel's parliament has voted in favour of legalising thousands of settler homes in the occupied West Bank, but critics hope the deal could stumble with united opposition.
Settlers have been ordered to vacate fifteen residences in the West Bank as they were built on stolen Palestinian land.
Obama dismissed Netanyahu's address to Congress, which criticised Iran nuclear talks, as "theatre" and "nothing new". Several other Democrats reacted angrily, finding it an "insult to the intelligence of the US"
Palestinian militant factions have threatened to retaliate against Israeli bombardment of the Gaza Strip amid the worst military flare-up since the 2014 war.
Israel on Sunday said its security services were helping France investigate the Paris attacks, and Israeli media suggested intelligence being provided drew on surveillance of groups in Syria and Iraq.
Israel's opposition leader Isaac Herzog has called for segregating Palestinian territories away from Israeli areas 'as much as possible' in words reminiscent of South Africa's apartheid regime.
An Israeli soldier who shot an injured Palestinian was released after serving nine months.
The UN Secretary-General said he was 'disturbed' by the Israeli Prime Minister's comments surrounding any opposition to settlement building.