Israel pushes forward E1 settlement with an iron fist: Will the Palestinian dream of establishing a state be completely “buried”?
2025-08-15 10:30:54
According to Refinitiv, on Thursday (August 14), Israel's far-right Finance Minister Bezalel Smotrich announced the launch of the controversial E1 settlement project, a move his office described as "burying" any possibility of Palestinian statehood. The plan, which aims to build a massive housing complex in the West Bank, would not only fragment Palestinian territory but also sever the connection between the West Bank and East Jerusalem, dealing a fatal blow to regional peace. The international community reacted strongly, with the Palestinian government, several allies, and peace organizations condemning the move as illegal and arguing that it would completely undermine the prospects for a two-state solution. The following details the background, process, and attitudes of all parties involved in this event, as well as its potential impact.
The E1 settlement plan has been in the works for a long time but has been shelved due to international pressure. Israeli Finance Minister Smotrich, an extreme nationalist in the ruling right-wing coalition, has long advocated for Israel to exercise sovereignty over the West Bank.
He spoke publicly at the planned site in Maale Adumim, saying the plan officially came into effect on Wednesday (August 13), and claimed that Israeli Prime Minister Benjamin Netanyahu and US President Donald Trump had agreed to resume the development project, although neither of them immediately confirmed this.
Smotrich stressed that this is not about responding to the international community through documents, decisions or statements, but about acting with "facts" - including the fact of building houses and residential areas.
According to a statement by its spokesman, the plan authorizes the construction of 3,401 houses for Israeli settlers between existing West Bank settlements and Jerusalem. This project will directly divide Palestinian territory, cut off its connection with East Jerusalem, and further consolidate Israel's control.
Peace Now, a peace organization that tracks settlement activity, noted that while some administrative steps are needed before construction can officially begin, infrastructure work could begin within months and housing construction is expected to begin within a year.
The advancement of this plan has undoubtedly exacerbated tensions in the Middle East and made the already fragile peace process even worse.
The Palestinians reacted most strongly. Palestinian presidential spokesman Nabil Abu Rudaineh called on the United States to pressure Israel to immediately stop building settlements, warning that the plan would destroy the Palestinians' chances of establishing a state in the West Bank.
The Palestinian government and its allies believe that the project is not only illegal but will also undermine regional peace plans and lead to further territorial division.
The United Nations also quickly intervened, with spokesman Stephane Dujarric urging Israel to reverse its decision, stressing that settlement construction violates international law, will end the prospects for a two-state solution, and further entrench the occupation.
European Commission spokeswoman Anita Schipper reiterated that the EU opposes any territorial changes that are not part of a political agreement, and pointed out that annexation of territory is illegal under international law. British Foreign Secretary Lamy said in a statement that the plan must be blocked because it would divide the future Palestinian state in two and blatantly violate international law.
Although a US State Department spokesman said that a stable West Bank is in line with Israel's security and US peace goals, he also stressed that Washington's current focus is on ending the Gaza war and suggested seeking more information from the Israeli government.
These condemnations reflect the international community's widespread dissatisfaction with Israel's unilateral actions, especially in the context of long-term opposition from the United States, European allies and other major powers. The restart of the plan may further isolate Israel.
Looking back at history, Israel froze the construction plan of Maale Adumim in 2012 due to international pressure, and suspended it again after a brief restart in 2020, mainly because major powers such as the United States and Europe regarded it as a threat to future peace agreements.
Most world powers agree that settlement expansion will fragment the Palestinian territory and undermine the feasibility of a two-state solution. The plan originally envisioned the establishment of a Palestinian state coexisting side by side with Israel in East Jerusalem, the West Bank, and Gaza. However, as Israel's military offensive in Gaza continues, some Western allies have begun to condemn Israel and consider recognizing a Palestinian state, making the revival of the E1 plan particularly provocative.
In a statement, the Peace Now organization warned that the plan is fatal to Israel's future and any chance of achieving two-state peace. They described the current situation as standing on the brink of an abyss while the government is pushing everyone forward at full speed.
Palestinians are particularly worried that such settlement construction will completely deprive them of their hopes for a state in the region and further exacerbate regional conflicts.
In short, Israel's launch of the E1 settlement project not only marks the burial of the Palestinian dream of statehood but also highlights the complexity of Middle Eastern geopolitics. This event could trigger broader international sanctions and diplomatic isolation, prompting more countries to recognize the State of Palestine, thereby shifting the balance of power in the region.
On an economic level, this escalation of geopolitical tensions could have a ripple effect on global markets. Specifically, the impact on gold prices is relatively positive. As a safe-haven asset, gold tends to rise when conflict in the Middle East intensifies, prompting investors to turn to gold for risk aversion. Oil prices, on the other hand, could face greater volatility. As a major oil-producing region, any instability in the Middle East could lead to supply concerns, pushing prices higher in the short term. However, if conflict escalates to the point of disrupting oil transportation, the price increases could be even more significant.
At 10:29 Beijing time, spot gold was trading at $3,337.12 per ounce.
Background and details of the launch of the plan
The E1 settlement plan has been in the works for a long time but has been shelved due to international pressure. Israeli Finance Minister Smotrich, an extreme nationalist in the ruling right-wing coalition, has long advocated for Israel to exercise sovereignty over the West Bank.
He spoke publicly at the planned site in Maale Adumim, saying the plan officially came into effect on Wednesday (August 13), and claimed that Israeli Prime Minister Benjamin Netanyahu and US President Donald Trump had agreed to resume the development project, although neither of them immediately confirmed this.
Smotrich stressed that this is not about responding to the international community through documents, decisions or statements, but about acting with "facts" - including the fact of building houses and residential areas.
According to a statement by its spokesman, the plan authorizes the construction of 3,401 houses for Israeli settlers between existing West Bank settlements and Jerusalem. This project will directly divide Palestinian territory, cut off its connection with East Jerusalem, and further consolidate Israel's control.
Peace Now, a peace organization that tracks settlement activity, noted that while some administrative steps are needed before construction can officially begin, infrastructure work could begin within months and housing construction is expected to begin within a year.
The advancement of this plan has undoubtedly exacerbated tensions in the Middle East and made the already fragile peace process even worse.
Strong condemnation from the international community
The Palestinians reacted most strongly. Palestinian presidential spokesman Nabil Abu Rudaineh called on the United States to pressure Israel to immediately stop building settlements, warning that the plan would destroy the Palestinians' chances of establishing a state in the West Bank.
The Palestinian government and its allies believe that the project is not only illegal but will also undermine regional peace plans and lead to further territorial division.
The United Nations also quickly intervened, with spokesman Stephane Dujarric urging Israel to reverse its decision, stressing that settlement construction violates international law, will end the prospects for a two-state solution, and further entrench the occupation.
European Commission spokeswoman Anita Schipper reiterated that the EU opposes any territorial changes that are not part of a political agreement, and pointed out that annexation of territory is illegal under international law. British Foreign Secretary Lamy said in a statement that the plan must be blocked because it would divide the future Palestinian state in two and blatantly violate international law.
Although a US State Department spokesman said that a stable West Bank is in line with Israel's security and US peace goals, he also stressed that Washington's current focus is on ending the Gaza war and suggested seeking more information from the Israeli government.
These condemnations reflect the international community's widespread dissatisfaction with Israel's unilateral actions, especially in the context of long-term opposition from the United States, European allies and other major powers. The restart of the plan may further isolate Israel.
Historical Review and Potential Risks
Looking back at history, Israel froze the construction plan of Maale Adumim in 2012 due to international pressure, and suspended it again after a brief restart in 2020, mainly because major powers such as the United States and Europe regarded it as a threat to future peace agreements.
Most world powers agree that settlement expansion will fragment the Palestinian territory and undermine the feasibility of a two-state solution. The plan originally envisioned the establishment of a Palestinian state coexisting side by side with Israel in East Jerusalem, the West Bank, and Gaza. However, as Israel's military offensive in Gaza continues, some Western allies have begun to condemn Israel and consider recognizing a Palestinian state, making the revival of the E1 plan particularly provocative.
In a statement, the Peace Now organization warned that the plan is fatal to Israel's future and any chance of achieving two-state peace. They described the current situation as standing on the brink of an abyss while the government is pushing everyone forward at full speed.
Palestinians are particularly worried that such settlement construction will completely deprive them of their hopes for a state in the region and further exacerbate regional conflicts.
summary
In short, Israel's launch of the E1 settlement project not only marks the burial of the Palestinian dream of statehood but also highlights the complexity of Middle Eastern geopolitics. This event could trigger broader international sanctions and diplomatic isolation, prompting more countries to recognize the State of Palestine, thereby shifting the balance of power in the region.
On an economic level, this escalation of geopolitical tensions could have a ripple effect on global markets. Specifically, the impact on gold prices is relatively positive. As a safe-haven asset, gold tends to rise when conflict in the Middle East intensifies, prompting investors to turn to gold for risk aversion. Oil prices, on the other hand, could face greater volatility. As a major oil-producing region, any instability in the Middle East could lead to supply concerns, pushing prices higher in the short term. However, if conflict escalates to the point of disrupting oil transportation, the price increases could be even more significant.
At 10:29 Beijing time, spot gold was trading at $3,337.12 per ounce.
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