Far-right finance minister Bezalel Smotrich has announced plans to approve over 3,000 housing units in the contested E1 settlement area between Jerusalem and Maale Adumim in the occupied West Bank. Long frozen due to international opposition, the project would physically separate East Jerusalem from the rest of the West Bank, undermining prospects for a contiguous Palestinian state. Smotrich declared the plan would ‘bury the idea’ of such a state, describing it as an assertion of Israeli sovereignty. Settlement expansion is considered illegal under international law, though Israel disputes this. The announcement comes amid growing international momentum toward recognising Palestinian statehood, which Israel opposes. Critics warn that the move deepens annexation, fuels conflict, and blocks the path to peace. Smotrich, together with national security minister Itamar Ben-Gvir, was sanctioned by the UK in June over ‘repeated incitements of violence against Palestinian communities’ in the occupied West Bank: see