The Organisation of the Islamic Conference (OIC) on Saturday denounced the United States for using its veto power to block a United Nations resolution that would have condemned Israeli settlements as being illegal, DPA reported.
"It is a devastating blow to the credibility of international efforts to resume the peace process," the group said in a statement.
Peace talks between Israel and the Palestinians had begun in September, but collapsed just three weeks later when a partial Israeli freeze on settlement construction in occupied Palestinian territories was allowed to expire.
The Palestinians have said they will not return to the negotiating table until Israel renews the moratorium.
The OIC, which has 57 member states and is headquartered in Saudi Arabia, argued that the US veto will only encourage Israel to continue its violations.
The group also reiterated calls for an immediate freeze to Israeli settlement construction in the West Bank and East Jerusalem.
All of the UN Security Council's 14 other members supported the resolution, which also had strong Palestinian and Arab backing. But the US argued that the measure would further hinder the peace talks.