UN, Europe, Arab nations slam bid to resume building in contentious E1 area; US issues vague statement; Smotrich says move a response to Western push for Palestinian state

Finance Minister Bezalel Smotrich attends a press conference announcing his plans to approve more than 3,000 housing units in the  E1 settlement project between Jerusalem and Ma’ale Adumim on August 14, 2025. (Yonatan Sindel/Flash90)

Finance Minister Bezalel Smotrich attends a press conference announcing his plans to approve more than 3,000 housing units in the E1 settlement project between Jerusalem and Ma’ale Adumim on August 14, 2025. (Yonatan Sindel/Flash90)

Europe, Arab countries and the United Nations, alongside Israeli rights groups, on Thursday assailed a government plan to greenlight the construction of thousands of Israeli homes in a contentious area of the West Bank, after the move was announced by Finance Minister Bezalel Smotrich.

The far-right politician said that he intends to approve tenders to build more than 3,000 housing units in the controversial E1 settlement project between Jerusalem and Ma’ale Adumim, a plan that he claimed Thursday “buries the idea of a Palestinian state.”

The UN called on Israel to reverse its decision, UN spokesperson Stephane Dujarric said on Thursday. “It would put an end to prospects of a two-state solution,” he told reporters. “Settlements go against international law… further entrench the occupation.”

The plan was also condemned by British Foreign Minister David Lammy, who said it marked a breach of international law and must be stopped immediately.

“The UK strongly opposes the Israeli government’s E1 settlement plans, which would divide a future Palestinian state in two and mark a flagrant breach of international law. The plans must be stopped now,” Lammy said in an emailed statement.

Norway’s Foreign Minister Espen Barth Eide said the move shows Israel “seeks to appropriate land owned by Palestinians in order to prevent a two-state solution.”

Norwegian Foreign Affairs Minister Espen Barth Eide addresses the media during a press conference at NATO’s headquarters in Brussels on April 4, 2025. (Nicolas Tucat/AFP)

Egypt came out firmly against the plan, with Cairo’s Foreign Ministry denouncing the minister’s “extremist statements,” saying they serve as a “new indication of Israeli deviation and arrogance.”

The Egyptian ministry linked Smotrich’s announcement to Prime Minister Benjamin Netanyahu’s remark earlier this week in an i24News interview in which the prime minister acknowledged a connection to the expansionist vision of a “Greater Israel.”

Qatar, which has mediated between Hamas and Israel in efforts to secure a ceasefire in Gaza, joined Egypt in denouncing Smotrich’s actions as a “blatant violation of international law.”

A spokesman for Palestinian Authority President Mahmoud Abbas called on the United States to pressure Israel into halting the plan.

Speaking separately to the Associated Press, PA Foreign Ministry official Ahmad al-Deek called the plan “colonial, expansionist and racist” and claimed that it is par for the course for Netanyahu’s ruling coalition.

“It falls within the framework of the extremist Israeli government’s plans to undermine any possibility of establishing a Palestinian state on the ground, to fragment the West Bank and to separate its southern part from the center and the north,” he said.

The E1 settlement project has been frozen for decades amid fierce opposition from the international community, including past US administrations, which feared the new settlement neighborhood would prevent the establishment of a contiguous, viable Palestinian state.

The plan would connect the Jerusalem and Ma’ale Adumim metropolitan areas, while simultaneously scuttling the prospect of a contiguous Palestinian presence between the population centers of Bethlehem, East Jerusalem, and Ramallah, which has long been considered the basis for a Palestinian state.

The construction scheme is scheduled to receive final approval from the government’s Higher Planning Council next week, on August 20.

A picture taken from the controversial E1 corridor in the West Bank shows the settlement of Ma’ale Adumim in the background, Feb. 25, 2020. (Ahmad Gharabli/AFP)

Israeli rights groups also condemned the plan, with the anti-settlement watchdog organization Peace Now warning that resuming construction in E1 is “deadly for the future of Israel and for any chance of achieving a peaceful two-state solution.”

“We are standing at the edge of an abyss, and the government is driving us forward at full speed. There is a solution to the Israeli-Palestinian conflict and to the terrible war in Gaza — the establishment of a Palestinian state alongside Israel — and it will ultimately come. The government’s annexation moves are taking us further away from this solution and guaranteeing many more years of bloodshed,” the group said in a statement.

Breaking the Silence, a left-wing group established by former Israel Defense Forces soldiers, accused Smotrich of encouraging West Bank settlement activity as the Gaza war continued to capture global attention.

“This land grab and settlement expansion will not only further fragment the Palestinian territory, but will further entrench apartheid,” it said.

Plan is ‘answer on the ground’ to Palestinian state recognition

Smotrich — who, in addition to being finance minister, holds a junior ministerial position within the Defense Ministry that gives him wide say over settlement construction — said Thursday that Netanyahu supported the controversial plan, as the premier remained mum on the dramatic step.

“He backs me up in everything concerning Judea and Samaria, and is letting me create the revolution,” Smotrich said at an event in Ma’ale Adumim organized by the Yesha Council, the umbrella organization representing local authorities in settlements.

“After 20 years of delays… the traffic jam has been broken [and] the E1 plan is underway,” he continued, adding that the government is “fulfilling the promise and connecting Ma’ale Adumim with a strategic, security and demographic connection, which ensures our united capital for generations.”

Finance Minister Bezalel Smotrich attends a press conference announcing his plans to approve more than 3,000 housing units in the E1 settlement project between Jerusalem and Ma’ale Adumim on August 14, 2025. (Yonatan Sindel/Flash90)

Smotrich said that the resumption of the long-frozen project was a response to a wave of Western countries that announced or floated plans to recognize a Palestinian state at the United Nations in September.

“Today, anyone in the world who tries to recognize a Palestinian state will receive an answer from us on the ground,” he declared. “Today we are writing a historic chapter in the story of the redemption of the people of Israel in their land.”

He also claimed that US President Donald Trump and Ambassador Mike Huckabee backed the step, hailing them “men of truth with a clear and distinct moral voice that is not confused by the hypocrisy of the West.”

Trump and Huckabee did not comment specifically on Smotrich’s E1 announcement as of Thursday afternoon. The US State Department, however, issued a vague statement stressing the importance of “stability” in the West Bank in response to reporters’ queries about the plan.

“A stable West Bank keeps Israel secure and is in line with the Trump administration’s goal to achieve peace in the region,” said a statement from the agency.

“We remain focused on ending the war in Gaza and ensuring Hamas will never govern Gaza again, freeing the hostages, including the remains of two Americans, and facilitating the delivery of critically needed humanitarian assistance,” the statement continued, indicating that the US is less focused on developments in the West Bank than those in Gaza.

Jacob Magid contributed to this report.


At the network’s Iranian end, companies operating under the Isatis brand serve as the domestic procurement hub.

A covert Iranian procurement network is bypassing international sanctions by using Vienna-based companies to purchase sensitive nuclear technology.

According to a new investigative report by Iran International, Iranian operatives have built a sophisticated supply chain stretching from Tehran to Austria, acquiring dual-use and military-grade equipment for Iran’s Organization of Defensive Innovation and Research, known as SPND.

Procurement activities focus heavily on neutronics—a highly specialized discipline vital to controlling nuclear chain reactions and, in military applications, producing neutrons for weapons design.

Tehran passed legislation in 2024 that granted SPND official recognition under Iranian law and placed it directly under the Supreme Leader’s authority.

The agency has faced Western sanctions for years over its role in potential weapons of mass destruction proliferation, with more than 30 of its scientists under U.S. sanctions along with multiple front companies.


Controversial project that would split West Bank into north and south has been frozen for decades due to international pressure; settler leader hails ‘great and historical achievement’

View of the Israeli settlement of Maale Adumin and the E1 area in the West Bank, January 1, 2017. (Yaniv Nadav/Flash90)

View of the Israeli settlement of Maale Adumin and the E1 area in the West Bank, January 1, 2017. (Yaniv Nadav/Flash90)

Far-right Finance Minister Bezalel Smotrich announced on Wednesday that he plans to approve tenders to build more than 3,000 housing units in the highly controversial E1 settlement project between Jerusalem and Ma’ale Adumim in the West Bank, saying the move “buries the idea of a Palestinian state.”

The project has been frozen for decades amid fierce opposition from the international community, who fear the new settlement neighborhood would prevent the establishment of a contiguous, viable Palestinian state.

“Approval of construction plans in E1 buries the idea of a Palestinian state and continues the many steps we are taking on the ground as part of the de facto sovereignty plan that we began implementing with the establishment of the government,” Smotrich said in a statement.

The potential construction of a new neighborhood for the Ma’ale Adumim settlement in the so-called E1 zone has long been cause for alarm in the international community. It would divide the West Bank into northern and southern regions and prevent the development of a Palestinian metropolis that connects East Jerusalem to Bethlehem and Ramallah, which the Palestinians have long hoped would serve as the foundation of their future state.

However, according to the Peace Now settlement watchdog, the approved plans are not for the original E1 proposal, but rather a separate neighborhood of Ma’ale Adumim.

Finance Minister Bezalel Smotrich attends a press conference at the Finance Ministry in Jerusalem on August 6, 2025. (Yonatan Sindel/Flash90)

“The 3,300 housing units in Ma’ale Adumim represent an increase of about 33% in the settlement’s housing stock — an enormous expansion for a settlement whose population has been stagnant at around 38,000 for the past decade and has experienced net out-migration. The tenders are for a large neighborhood that will connect Ma’ale Adumim’s built-up area with the industrial zone to its east,” Peace Now said.

In a statement, Israel Gantz, chair of the Yesha settler umbrella group, applauded the measure as “another great and historical achievement for the settlement on the eve of the application of sovereignty,” thanking Smotrich and Prime Minister Benjamin Netanyahu.

Ma’ale Adumim Mayor Guy Yifrach said that the “Palestinians sought to create a chokehold through illegal construction, and building the neighborhood will defeat their goal.”

In March, the security cabinet approved the construction of the “Fabric of Life” Palestinian-only bypass road in the Jerusalem area in a bid to separate Israeli and Palestinian traffic and entrench Israel’s presence beyond the Green Line.

Hailing that move, the Prime Minister’s Office said that it would reduce congestion on the road between the capital and Ma’ale Adumim and boost Israeli construction in E1.