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Settlement plan revived shapes regional debate

Bezalel Smotrich restarts a high stakes E1 settlement plan that could split East Jerusalem from the West Bank and provoke international reaction.

August 14, 2025 at 10:09 AM
blur Far-right Israeli minister vows settlement push to ‘bury’ Palestinian state

Bezalel Smotrich revives a plan to expand settlements outside Jerusalem that would split the West Bank

Settlement push revives plan to bury Palestinian state

Israel’s finance minister Bezalel Smotrich has revived the long shelved E1 plan to expand the Ma’ale Adumim settlement outside Jerusalem. The package would add about 3,000 housing units between Jerusalem and the Dead Sea and would place new housing in a corridor that could separate Bethlehem and Ramallah from the rest of the West Bank. Critics say the project would physically divide the territory and undermine prospects for a two state solution. The plan has faced international opposition for years.

Smotrich pledged to fast track the approvals, a move aligned with other steps the current government has taken to push settlement activity. Defence minister Israel Katz announced 22 new settlements in May, arguing the moves would prevent the establishment of a Palestinian state. Peace Now warned that rushing through key meetings could backfire. Several governments have signalled they may recognise a Palestinian state in September, raising the pressure on Israel as it presses ahead on the ground.

Key Takeaways

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Smotrich restarts a high stakes settlement project
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Plan would physically divide the West Bank by linking Jerusalem to Ma ale Adumim
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International opposition remains strong and coordinated
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September international recognition adds political pressure
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Rushed approvals risk legal and diplomatic backlash
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Peace Now warns that bureaucratic speed could backfire
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Defence ministry involvement heightens strategic stakes
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Two state prospects face a fresh obstacle

"This reality will bury the idea of a Palestinian state."

Bezalel Smotrich at a site near the proposed E1 settlement

"We are standing at the edge of an abyss."

Reaction from Peace Now to the fast tracking of approvals

"The government is openly announcing apartheid."

Aviv Tatarsky of Ir Amim on the implications of the plan

"To prevent the establishment of a Palestinian state."

Defence minister Israel Katz on settlements

The move signals a shift from diplomacy to on the ground policy. It hardens the geography of the conflict and narrows room for a two state outcome. It also tests international responses at a moment when security and sovereignty arguments sit beside questions of legality and human impact. If this becomes routine, it could close the window for negotiations faster than many expect and deepen regional tensions.

Highlights

  • This reality will bury the idea of a Palestinian state
  • We are standing at the edge of an abyss
  • The government is openly announcing apartheid
  • Driving us forward at full speed

Political risk and regional backlash

The revival of the E1 plan touches sensitive issues around sovereignty, international law, and potential backlash from Palestinians and allies. The move could complicate diplomacy and risk domestic unrest if it escalates tensions.

The coming months will test whether settlements or diplomacy holds the path to peace.

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