Iranian Foreign Ministry Spokesman Bahram Qasemi said continuous construction of the settlements in the Palestinian territories is against the international laws, semi-official Fars news agency reported.
Qasemi called on the international community to pressure Israel which, he said, has "defied the UN resolutions" and has continued its aggressive and expansionist policies.
On Tuesday, Israel announced a plan to build 2,500 new housing units in Jewish settlements in the occupied West Bank.
Israel seized East Jerusalem in the 1967 Mideast War, along with the rest of the West Bank and the Gaza Strip. It later annexed East Jerusalem and declared it as part of its "eternal" capital, in a move that has never been recognized by the international community.