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By Gabe Whisnant
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Israel on Wednesday gave final approval for a long-disputed settlement project in the occupied West Bank, a move that Palestinians and rights groups warn could split the territory in two and deal a devastating blow to prospects for a future Palestinian state.
The project, located in a tract of land known as E1 just east of Jerusalem, has been under discussion for more than two decades. While repeatedly advanced, it was frozen for years under U.S. pressure as successive administrations sought to preserve the viability of negotiations toward a two-state solution. The international community overwhelmingly considers Israeli settlement construction in the West Bank to be illegal under international law and a serious obstacle to peace.
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Far-right Finance Minister Bezalel Smotrich, a former settler leader and one of the government's most outspoken voices on the issue, celebrated the approval as a direct rebuke to Western countries that recently announced plans to recognize a Palestinian state.
"The Palestinian state is being erased from the table not with slogans but with actions," Smotrich declared. "Every settlement, every neighborhood, every housing unit is another nail in the coffin of this dangerous idea."
Prime Minister Benjamin Netanyahu has long rejected the idea of a Palestinian state alongside Israel, insisting instead on maintaining open-ended control over the West Bank, annexed east Jerusalem, and the Gaza Strip. Israel seized all three territories during the 1967 Middle East war, and Palestinians have consistently sought them as the foundation of their future state.
What is the E1 Settlement Project?
The E1 project includes roughly 3,500 apartments that would connect the existing settlement of Maale Adumim with Jerusalem. Critics say the location is strategically significant because it represents one of the few remaining territorial links between the West Bank cities of Ramallah in the north and Bethlehem in the south. Cutting that corridor, they warn, would not only fragment Palestinian population centers but also cripple the geographic contiguity of any future state.
Though Ramallah and Bethlehem are only 14 miles apart, Palestinians already face arduous restrictions traveling between them. To make the journey, they must endure long detours through multiple Israeli checkpoints, often spending hours on what should be a short trip. The hope had been that in the framework of a negotiated settlement, the E1 area could serve as a direct and functional link between the two cities.
"The settlement in E1 has no purpose other than to sabotage a political solution," said Peace Now, an Israeli group that tracks settlement growth. "While the consensus among our friends in the world is to strive for peace and a two-state solution, a government that long ago lost the people's trust is undermining the national interest, and we are all paying the price."
The approval comes as Palestinians face mounting challenges in the West Bank. The war in Gaza has drawn international attention, but in the West Bank violence and displacement have surged. In recent months, there has been an uptick in settler attacks on Palestinian communities, military raids, and tighter checkpoints, as well as Palestinian attacks targeting Israelis. More than 700,000 Israeli settlers now live in the West Bank and east Jerusalem.
Smotrich also announced the approval of 350 new homes in the settlement of Ashael, near Hebron, during the same meeting. Israel's government, dominated by religious and ultranationalist politicians with strong ties to the settlement movement, has placed settlement growth at the center of its agenda. Smotrich himself has been granted Cabinet-level authority over settlement policy, underscoring the influence of the movement within Netanyahu's coalition.
If the process proceeds quickly, infrastructure work in E1 could begin within months, with home construction starting in about a year. For many Palestinians and rights groups, that timeline adds urgency to what they see as a pivotal moment for the future of the West Bank—and for any remaining hope of a two-state solution.
How many countries recognize Palestine as a state?
As of today, around 140 of the 193 United Nations member states recognize Palestine as a sovereign state. Recognition surged in the late 20th century following the Palestine Liberation Organization's 1988 declaration of independence, and it has grown steadily, particularly among countries in Africa, Asia, the Middle East, and Latin America. However, major Western powers—including the United States, most of Western Europe, and several others—have withheld recognition, arguing that Palestinian statehood should come through direct negotiations with Israel. The split in international recognition reflects the deep divisions in global diplomacy over the Israeli-Palestinian conflict, and recent moves by some European nations, and Canada, to recognize Palestine have reignited debate on the issue.
This article includes reporting by the Associated Press.
Update: 8/20/25, 6:56 p.m. ET: This article was updated with new information and remarks.
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