Israeli Prime Minister Benjamin Netanyahu said Sunday that U.S. President Barack Obama's criticism of the new housing development construction in East Jerusalem is against American values.

During an interview with CBS' "Face the Nation," Netanyahu said he was baffled by Obama's condemnation of the project and called the criticism "anti-peace," which further strains the already marred relationship between the U.S. and Israel.

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Last week, Obama warned Israel about the housing project and said it will distance Israel from their closest allies. The U.S. president said Israel's project will question more Israel's commitment to peace with Palestine.

The United States is not alone in criticizing Israel for seizing East Jerusalem. The international community also sees the housing development project an illegitimate settlement activity.

Israel has claimed that the area is part of their capital and that the Jewish housing development will be for the localities of the city.

The housing project would let dozens of settlers move into six apartment buildings once the construction is completed.

Despite Obama's criticism of the project, Netanyahu said he still supports the attacks against the Islamic State of Iraq in the Levant (ISIL) militants also known as Daesh.

He said Israel will be helping the U.S. in any way it can to dismantle the jihadist group.

The Prime Minister believes that ISIL militants and Hamas should be defeated because both groups are competing for dominance. He said both are dangerous groups as they tend to "marry their mad ideologies to weapons of mass death."

Netanyahu added that if this does not stop, the threats ISIL and Hamas for world domination could actually be possible, Netanyahu added.

Obama and Netanyahu also discussed new ways for Israelis to feel safe without having to kill Palestinian children during the Oval Office talks last Wednesday. The two leaders also talked about the reconstruction of the Gaza Strip but information about these have not yet been released.

TagsAshkenazi Jews, politics, Israeli Jews, Netanyahu, Direct negotiations between Israel and the Palestinians