UN condemns Israel’s approval of settlement plan to ‘erase’ idea of Palestinian state

E1 project, which would bisect occupied West Bank, has received final go-ahead, says ultra-nationalist minister

A view of the West Bank settlement of Ma'ale Adumim in the background, beyond Jerusalem, on Wednesday, August 20th, 2025. The Israeli Civil Administration's Settlement Subcommittee has approved the promotion of the E1 plan in Ma'ale Adumim, which includes approximately 3,400 new housing units. Photograph: Atef Safadi/EPA
A view of the West Bank settlement of Ma'ale Adumim in the background, beyond Jerusalem, on Wednesday, August 20th, 2025. The Israeli Civil Administration's Settlement Subcommittee has approved the promotion of the E1 plan in Ma'ale Adumim, which includes approximately 3,400 new housing units. Photograph: Atef Safadi/EPA

A widely condemned Israeli settlement plan that would cut across land which the Palestinians seek for a state has received final approval, according to a statement from Israeli finance minister Bezalel Smotrich.

The approval of the E1 project, which would bisect the occupied West Bank and cut it off from East Jerusalem, was announced last week by Mr Smotrich and received final go-ahead from a defence ministry planning commission on Wednesday, he said.

Restarting the project could further isolate Israel, which has watched some western allies – frustrated by its continuation and planned escalation of the Gaza war – announce that they may recognise a Palestinian state at the United Nations General Assembly in September.

“With E1 we are delivering finally on what has been promised for years,” Mr Smotrich, an ultra-nationalist in the ruling right-wing coalition, said in a statement. “The Palestinian state is being erased from the table, not with slogans but with actions.”

UN spokesperson Stephane Dujarric said: “We condemn the decision taken today on expanding this particular settlement, which ... will drive a stake through the heart of the two-state solution. We call on the government of Israel to halt all settlement activity.”

The Palestinian Foreign Ministry also condemned the announcement, saying the E1 settlement would isolate Palestinian communities living in the area and undermine the possibility of a two-state solution.

British foreign minister David Lammy said on X: “If implemented, it would divide a Palestinian state in two, mark a flagrant breach of international law and critically undermine the two-state solution.”

A German government spokesperson commenting on the announcement told reporters that settlement construction violates international law and “hinders a negotiated two-state solution and an end to the Israeli occupation of the West Bank”.

Peace Now, an organisation that tracks settlement expansion in the West Bank, called the E1 project “deadly for the future of Israel and for any chance of achieving a peaceful two-state solution” which is “guaranteeing many more years of bloodshed”.

Asked about E1 in an interview, US ambassador to Israel Mike Huckabee said talk of a two-state solution was not a “high priority” for the Trump administration and that there were too many unanswered questions about what a Palestinian state would look like.

Israel’s plans to expand settlements are part of an increasingly difficult reality for Palestinians in the occupied West Bank as the world’s attention focuses on the war in Gaza.

There have been marked increases in attacks by settlers on Palestinians, evictions from Palestinian towns, and checkpoints that choke freedom of movement, as well as several Palestinian attacks on Israelis.

More than 700,000 Israelis now live in the occupied West Bank and east Jerusalem, territories captured by Israel in 1967 and sought by the Palestinians for a future state.

Israeli prime minister Binyamin Netanyahu has not commented on the E1 announcement.

On Sunday, during a visit to Ofra, another West Bank settlement established a quarter of a century ago, he made broader comments, saying: “I said 25 years ago that we will do everything to secure our grip on the land of Israel, to prevent the establishment of a Palestinian state, to prevent the attempts to uproot us from here. Thank God, what I promised, we have delivered.”

Israeli far-right finance minister Bezalel Smotrich displays a map of an area near the settlement of Ma'ale Adumim, a land corridor known as E1, outside Jerusalem in the occupied West Bank, in recent days. Photograph: Menahem Kahana/AFP/Getty
Israeli far-right finance minister Bezalel Smotrich displays a map of an area near the settlement of Ma'ale Adumim, a land corridor known as E1, outside Jerusalem in the occupied West Bank, in recent days. Photograph: Menahem Kahana/AFP/Getty

The two-state solution to the decades-old Israeli-Palestinian conflict envisages a Palestinian state in East Jerusalem, the West Bank and Gaza, existing side by side with Israel.

Western capitals and campaign groups have opposed the settlement project due to concerns that it could undermine a future peace deal with the Palestinians.

The plan for E1, located adjacent to Maale Adumim and frozen in 2012 and 2020 amid objections from the US and European governments, involves construction of about 3,400 new housing units.

Infrastructure work could begin within a few months, and house-building in about a year, according to Israeli advocacy group Peace Now, which tracks settlement activity in the West Bank.

Most of the international community considers Israeli settlements in the West Bank illegal under international law.

Israel disputes this, citing historical and biblical ties to the area and saying the settlements provide strategic depth and security. – Reuters/AP

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