On Thursday, Israel’s far-right finance minister announced the approval of a controversial settlement in the Israeli-occupied West Bank. This decision has raised worries among Palestinians and human rights groups about how it might block future Palestinian statehood by splitting the West Bank into two separate areas.

This news comes at a time when several important U.S. allies are showing their plans to recognize a Palestinian state in September.

“This situation ultimately puts an end to the idea of a Palestinian state, as there is nothing to recognize and no one to recognize it,” said Finance Minister Bezalel Smotrich. “Any international group trying to acknowledge a Palestinian state today will face a response from us on the ground.”
The situation in E1, an unoccupied area located east of Jerusalem, has been looked at for over twenty years but was paused due to U.S. pressure in earlier administrations. On Thursday, Smotrich praised President Trump and U.S. ambassador to Israel Mike Huckabee as “true friends of Israel like we have never experienced before.”

The E1 project still needs its final approval, which is expected next week. Smotrich mentioned that the plan includes about 3,500 apartments aimed at growing the Maale Adumim settlement. Although a few bureaucratic hurdles remain, infrastructure development is expected to commence in the coming months, with residential construction potentially starting within a year.

Human rights groups swiftly condemned the proposal. Peace Now described it as “disastrous for Israel’s future and for any prospects of realizing a peaceful two-state solution,” stating that it “ensures many more years of bloodshed.”

The Palestinian foreign ministry has described the plan as a continuous set of actions it refers to as crimes, such as genocide, displacement, and annexation, based on information sourced from online platforms. Israel firmly rejects these accusations. It remains uncertain whether Netanyahu supports the E1 plan.

Recent updates indicate that Smotrich’s popularity has dropped over the past few months. Current polls show that his party may not secure any seats if elections were held today.