The US amendment - holding Hamas responsible for rocket attacks against Israel, the destruction of crossing points delivering humanitarian aid from Israel into Gaza, and the use of Palestinian civilians as human shields - won the support of 62 member states, but only after an attempt led by the Algerian delegation to prevent a vote outright failed.
He was fully backed by Turkey on behalf of the Organisation of Islamic Cooperation, and Algeria on behalf of the Arab League.
"Advancing peace is not the goal of this resolution".
It follows the killing of more than 120 Palestinians in recent months near the Gaza border.
"The hypocrisy of the General Assembly knows no bounds, as anti-Israel elements deceitfully blocked the condemnation of Hamas, a murderous terrorist organization", Danon said in a statement. Diplomats said Algeria, which presented the draft resolution with Turkey, could push for a "no-action" motion to block a vote on the USA amendments.
The draft General Assembly resolution calls for "immediate steps towards ending the closure and the restrictions imposed by Israel on movement and access into and out of the Gaza Strip".
"We had more countries on the right side than the wrong side", Haley said. "It is despicable for any country to even consider to vote for a resolution condemning Israel while refusing to support the condemnation of Hamas". The killings coincided with the opening of the new USA embassy in Jerusalem.
The U.S.' support for Israel during the recent uptick in violence on the Gaza-Israel border has been criticized by many human rights groups.
The Arab-drafted text deplores Israel's use of "excessive, disproportionate and indiscriminate force" against Palestinian civilians and calls for protection measures for Palestinians in Gaza and the occupied West Bank.
Brett Bruen, a former Obama administration official and president of Global Situation Room, told CBS News at the United Nations on Wednesday that USA actions in the Middle East are "costly for Israel, which has grown further isolated" as the US irritates allies and emboldens adversaries.
The resolution would require the UN Secretary-General to submit a written report within 60 days of its adoption, with recommendations for the establishment of an worldwide protection mechanism for the Palestinian civilian population.
Australia, the Marshall Islands, Micronesia, Nauru, the Solomon Islands and Togo joined the United States and Israel in voting against the resolution.
Palestinians and their supporters said most protesters were unarmed civilians and Israel used excessive force against them.
Amid global condemnation of its use of lethal force, Israel said numerous dead were militants and that the Israeli army was repelling attacks on the border fence between Israel and Gaza.
He warned ambassadors that by supporting the resolution "you are empowering Hamas".