Will Israel's new settlement project make a Palestinian state impossible?

Israel’s far-right extremist finance minister, Bezalel Smotrich, triggered worldwide condemnation this week after announcing that Israel will be building a new illegal settlement comprised of thousands of housing units in the occupied West Bank.

Himself a settler, Smotrich added the project will be made up of 3,401 new houses in the E1 area near the existing  Ma'ale Adumim settlement, which lies between Jerusalem and the Palestinian city of Jericho.

He has also boasted that the new project will end any prospect of a two state solution, amid outrage from international organisations and rights groups.

An attempt to crush hopes of a Palestinian state

In his announcement, Smotrich noted that the project will "eliminate the idea of a Palestinian state" and said the latest settlement is part of the "de facto sovereignty plan" which he says the Israeli government is implementing.

He added that the location of the settlement would sever the connection between the Palestinian West Bank cities of Ramallah and Bethlehem, further dividing the occupied territory and making the prospect of a Palestinian state almost impossible.

Smotrich said that the plan would mean "there is nothing to recognise and no one to recognise".

Israel's security cabinet also previously approved plans to build a road designated for Palestinians south of the E1 area, a step that would pave the way for constructing the new settlement.

The road aims to connect Palestinian villages in the northern West Bank to the territory's south while diverting Palestinian vehicle traffic away from Highway 1, dedicating it almost entirely to Israeli settlers traveling between Jerusalem and Ma'ale Adumim.

Israeli settlements in the West Bank, including East Jerusalem, are illegal under international law, but then Israeli government has repeatedly ignored this for over 50 years.

Smotrich’s remarks also come amid growing international criticism of Israel over its genocide in Gaza. Several countries in recent weeks, including France, UK, Malta, and Australia said they may recognise a Palestinian state at the UN General Assembly in September.

How have Palestinians responded?

Palestinian officials have outright rejected and deplored the decision, highlighting the further theft of Palestinian land.

The Palestinian foreign ministry based in Ramallah had previously stated that Israel’s settlement plans in the E1 area will prevent the establishment of a viable Palestinian state and will open a new chapter in the 77-year-old Palestinian Israeli conflict.

"This settlement construction in this area will separate the northern West Bank from its south, turning the West Bank into two separate enclaves.

"The United Nations, with all its agencies, has called for all legal and political measures to be taken to prevent Israel from implementing its plans aimed at closing all political horizons and destroying hopes for a two-state solution," the ministry said.

How have international powers, including Israel's allies, reacted?

Countries around the world, including Israel's allies which are still supplying it with weapons, have condemned the move.

A spokesperson for the European Union said, "The EU rejects any territorial change that is not a part of a political agreement between involved parties."

The UK’s foreign minister, David Lammy, responded to the plan saying: "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."

Germany too, strongly rejected the plan and demanded that Israel "stop settlement construction".

Espen Barth Eide, Norway’s foreign minister, said the move proves that Israel "seeks to appropriate land owned by Palestinians in order to prevent a two-state solution".

In a statement, Turkey’s foreign ministry said the plan "disregards international law".

Arab states, including Jordan, Qatar, and Egypt said the approval of the illegal settlement would only further entrench and deepen tensions, and undermine any prospects of peace.

In separate statements, the nations said the plan was a flagrant violation of international law and an assault on Palestinian people's right to establish an independent state.