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Home > World > Israel Revives Controversial E1 Settlement Plan – What It Means for Palestinians

Israel Revives Controversial E1 Settlement Plan – What It Means for Palestinians

Israel's approval of its controversial E1 settlement unit -- 3,400 homes between East Jerusalem and Maale Adumim - risks isolating the West Bank and undermining the two-state solution, experts say. Peace groups, global leaders have condemned the announcement following imposition of sanctions , which could reshape regional geopolitics.

Published By: Kriti Dhingra
Published: August 14, 2025 17:21:00 IST

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What’s the E1 Project?

Israel’s far-right Finance Minister Bezalel Smotrich has greenlit a long-freeze proposal to build over 3,400 homes in the E1 zone, wedged between East Jerusalem and the Maale Adumim settlement in the occupied West Bank, foreign media reported on Thursday. Smotrich asserted that the move will “bury the idea of a Palestinian state”, adding that those planning to recognise one “will receive an answer from us on the ground,” according to a report published by The Associated Press.

While the final approval from Israel’s High Planning Council remains pending, Smotrich indicated that infrastructure work could start in a few months time with the landmark construction expected to begin within a span of one year.

While Israel Prime Minister Benjamin Netanyahu is yet to issue a statement in this regard, the international backlash has already appears to be in effect.

Peace Advocates Sound Alarm

The group ‘Peace Now’, which tracks settlement activity in the West Bank, immediately condemned the plan as “deadly for the future of Israel and for any chance of achieving a peaceful two-state solution,” Reuters reported Thursday. The organisation stressed that constructing homes in the E1 zone would physically divide the West Bank, isolating East Jerusalem, which is widely believed to be a key to the idea of a Palestinian statehood.

Over 700,000 Israeli settlers reside in roughly 160 settlements across the West Bank and East Jerusalem, the BBC reported, citing estimates from the Peace Now group. Experts say the development of E1 zone would fundamentally obstruct Palestinian territorial continuity.

Global Reaction: Sanctions and Concerns

The international community has condemned the announcement. Earlier this year, Britain, Canada, Australia and New Zealand announced imposition of sanctions on Smotrich and Security Minister Itamar Ben-Gvir, citing what they claimed was the Israeli top officials’ repeated incitement toward violence in the occupied territories.

Western nations, meanwhile, are ramping up pressure on Israel to halt settlement expansion. With Israel increasingly focussing on Gaza, human rights groups have reported a notable rise in settler violence and alleged land incursions in the West Bank.

What Is at Stake for the Two-State Outcome

Analysts say the revamped E1 project will likely increase tensions in the already volatile region as it puts viable possibilities of a unified Palestinian state at serious risk. They further warned that the move undermines any meaningful peace settlement and international rule of law, particularly in light of international court advisory opinions deeming settlements illegal.

Experts say that with diplomacy seemingly lagging, E1’s strategic positioning could irreversibly sever Palestinian urban continuity between key cities including Ramallah, East Jerusalem, and Bethlehem, effectively making the idea of a cohesive Palestinian state all the more elusive.

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