A setback for Middle East peace

The international community has voiced deep concern over Israel’s recently approved the E1 settlement plan in the West Bank, warning that the decision poses a serious threat to the prospects of a two-state solution for Israel and Palestine.

A view of the E1 settlement area, West Bank, August 14, 2025.

The expansion of Jewish settlements on occupied Palestinian territories is undermining international efforts to achieve lasting peace in the Middle East and further aggravating an already highly volatile situation in the region.

A group of 21 countries has issued a joint statement condemning Israel’s approval of the E1 plan in the West Bank as “unacceptable” and in violation of international law. Among the signatories were Australia, Canada, Italy, Belgium, Denmark, Estonia, Finland, Iceland, Ireland, Japan, Latvia, Lithuania, along with the European Union’s High Representative for Foreign Affairs. Diplomats stressed that Israel’s plan threatens security and risks fuelling violence and instability across the region.

In June this year, the foreign ministers of nine EU member states sent a letter urging the European Commission to propose measures to end trade between the EU and Israeli settlements in the occupied Palestinian territories.

Israel’s settlement expansion has sharply escalated since the outbreak of conflict in the Gaza Strip in October 2023. All Israeli settlements in the West Bank, a territory under occupation, are deemed illegal under international law, including a July 2024 ruling by the International Court of Justice.

Despite strong international opposition, Israel has recently given formal approval for a new settlement project in E1, an area east of Jerusalem and long a focal point of dispute. With 3,753 housing units, including 3,401 newly approved by Israel’s Higher Planning Council, the project will link existing settlements to form a contiguous strip of land cutting the West Bank off from East Jerusalem.

Palestine, the United Nations and numerous countries in the Middle East and Europe have strongly condemned Israel’s plan, warning that it will heighten tensions and undermine the possibility of establishing an independent Palestinian state, with East Jerusalem as its capital and borders based on the pre-1967 Middle East war lines.

For Palestinians and much of the international community, the expansion of Jewish settlements in E1 represents a major obstacle to building peace between Israel and Palestine. The project would virtually sever East Jerusalem from the northern West Bank, disrupting territorial continuity and obstructing the creation of a Palestinian state. The Palestinian Authority argues that the E1 plan fragments geographical and demographic unity while dividing the West Bank into isolated enclaves.

Meanwhile, alongside settlement expansion, Israel’s military activities in the West Bank have inflicted heavy losses and suffering, forcing many Palestinian families to flee their homes without the prospect of return. According to the United Nations Relief and Works Agency for Palestine Refugees (UNRWA), “forced displacement” of Palestinians in the West Bank is rising at an alarming rate.

The two-state solution – a Palestinian state existing peacefully alongside Israel – has long been considered the only viable path to ensuring lasting peace and security for both peoples. The United Nations and the international community consistently reaffirm their support for the Palestinians’ right to self-determination and to statehood.

Israel’s continued pursuit of the E1 plan poses a grave challenge to peace, economic development and social stability in the occupied Palestinian territories. It runs counter to United Nations resolutions and risks further inflaming tensions in the already volatile Middle East. The plan not only undermines the foundations of the two-state solution but also deepens divisions and threatens long-term stability across the region.

Amid a Middle East that remains a “powder keg”, the international community is urging Israel to reverse its decision on the E1 settlement and refrain from unilateral actions that jeopardise the search for a comprehensive and lasting peace for both Israel and Palestine.

NDO