Israeli far-right Finance Minister Bezalel Smotrich declared on Wednesday that construction would begin on a long-stalled settlement in the E1 area between the West Bank settlement of Maale Adumim and Jerusalem. Speaking at the site, Smotrich said the project would physically divide the West Bank from East Jerusalem, effectively “burying the idea of a Palestinian state.” He asserted that Netanyahu and Trump had agreed to the move, although neither leader has issued confirmation.

International and Regional Backlash

The E1 project, frozen in 2012 and again in 2020 due to U.S. and European opposition, is widely regarded by the UN and most world powers as a threat to a viable two-state solution. The Palestinian foreign ministry denounced the plan as an extension of “genocide, displacement and annexation,” while Hamas described it as part of Israel’s “colonial, extremist” agenda. Jordan’s foreign ministry called it a blatant breach of international law.

Peace Now, an Israeli NGO monitoring settlement expansion, warned that the scheme could be “deadly for the future of Israel” by foreclosing peace prospects. The group noted that while final approvals are pending from Israel’s High Planning Council, infrastructure work could begin within months, with housing construction starting in about a year.

Impact on the Ground

The plan envisions building 3,401 homes for Israeli settlers, consolidating control over a corridor that Palestinians view as essential for territorial continuity. About 700,000 Israeli settlers currently live among 2.7 million Palestinians in the West Bank and East Jerusalem, territories the international community largely considers illegally occupied. Israel disputes this, calling the land “disputed” and citing historical and biblical claims.

The announcement comes as Israel faces mounting diplomatic isolation over its Gaza war, which has killed more than 61,000 people according to Gaza health officials. Britain, Canada, Australia, and New Zealand have already sanctioned Smotrich for incitement against Palestinians.