Finance minister of Israel warns potential West Bank annexation
The international community has expressed strong disapproval and concerns about Israel's latest plans to construct over 3,400 housing units for Israeli settlers in the E1 area of the West Bank. This move, which would effectively connect Ma'ale Adumim settlement to Jerusalem and divide the West Bank, has been criticised for severely undermining the prospects for peace and a two-state solution [1].
Peace advocacy groups, such as Peace Now, have described the E1 construction as "particularly fatal" to peace efforts. They argue that it divides the West Bank and destroys the territorial contiguity needed for a Palestinian state [1]. The plan has faced strong resistance since the 1990s from many international actors, including previous U.S. administrations, due to its obstructive nature towards the two-state solution [1].
Israeli Finance Minister Bezalel Smotrich has threatened to annex the West Bank if a Palestinian state is recognized, a stance that has alarmed the international community as it contravenes international law and peace agreements [1][2]. However, specific official international reactions to the annexation threat in 2025 were not detailed in the sources [1][2].
The E1 construction is part of a broader surge in settlement construction, with over 24,300 units approved by Israeli authorities in 2025 alone. This has further deepened concerns internationally about Israel’s commitment to a negotiated peace [1].
The EU has urged Israel to refrain from the E1 construction plans and halt settlement construction in the West Bank, citing concerns that such decisions exacerbate the already tense situation and violate international law [1]. Jordan and Egypt have warned that Israel's settlement policy hinders peace and stability in the region. Qatar has criticised Israel's occupation policy, claiming it aims solely at the forced expulsion of the Palestinian population [1].
Several countries, including France, Canada, and Australia, plan to recognise a Palestinian state next month. However, this move is being met with resistance from Israeli Finance Minister Bezalel Smotrich, who has stated that if a Palestinian state is recognised in September, Israel will assert full sovereignty over all areas of Judea and Samaria (the Hebrew term for the West Bank) [1].
The E1 area is one of the most sensitive points in the conflict between Israel and the Palestinians. Construction in this area would effectively divide the West Bank into northern and southern parts, making a contiguous territory for a future Palestinian state difficult, if not impossible [1]. The Israeli government has repeatedly postponed the E1 construction plans under international pressure [1].
References: [1] Al Jazeera. (2025). Israel's E1 settlement plan sparks international outcry. Retrieved from https://www.aljazeera.com/news/2025/9/1/israels-e1-settlement-plan-sparks-international-outcry [2] Middle East Eye. (2025). Israel's Bezalel Smotrich threatens annexation of West Bank if Palestine recognised. Retrieved from https://www.middleeasteye.net/news/israels-bezalel-smotrich-threatens-annexation-west-bank-if-palestine-recognised
- The EU has urged Israel to halt settlement construction in the West Bank, as concerns that such decisions exacerbate war-and-conflicts and violate international law continue to rise.
- Peace Now, among other peace advocacy groups, argue that Israel's latest plans to construct over 3,400 housing units in the E1 area of the West Bank, which would divide the West Bank and destroy the territorial contiguity needed for a Palestinian state, are particularly fatal to peace efforts and are influenced by politics and general-news.
