"This is a bad deal," Netanyahu said on CNN's "State of the Union."
He said that global leaders should increase sanctions on Iran, not loosen them.
"I think, if you want a peaceful solution, as I do, then the right thing to do is ratchet up the sanctions," he said. "Iran is practically giving away nothing. It's making a minor concession, which they can reverse in weeks, and you endanger the whole sanctions regime that took years to make."
Netanyahu argued that an imperfect deal could backfire and force the U.S. and other to used the military option.
"If you do a bad deal, you may get to the point where your only option is a military option," he said. "So a bad deal actually can lead you to exactly the place you don't want to be."