JERUSALEM — A contentious Israeli plan to construct thousands of new settlement units in the sensitive area known as E1 has drawn swift and severe criticism from Palestinian authorities and the international community, who warn it could effectively sever the West Bank and eliminate any prospect of a viable Palestinian state.
The E1 corridor is a strategically significant area located just east of Jerusalem. Proceeding with construction there would create a continuous band of Israeli settlements, physically separating the northern and southern parts of the occupied West Bank.

Palestinian officials have condemned the move, with one senior official stating it represents a deliberate policy to undermine the two-state solution. “This is not just a settlement,” the official was quoted as saying. “It is a dagger in the heart of the Palestinian project.”
The United Nations and several European nations have issued statements of deep concern, urging the Israeli government to reconsider the plan, which they argue is a major obstacle to peace. They maintain that such construction violates international law, a claim Israel disputes.
The Israeli government has defended the housing project as a necessary response to its citizens’ needs and a legitimate exercise of its authority.

However, critics argue the timing and location are politically motivated, further cementing Israeli control over East Jerusalem, which Palestinians claim as the capital of their future state.
Analysts suggest that if developed, the E1 project would complete the encirclement of East Jerusalem by Israeli settlements, dealing what many fear would be a fatal blow to the already diminished prospects for a negotiated two-state solution based on pre-1967 borders.
Sources: BBC News, Reuters, Al Jazeera, The Guardian