Israeli far-right Finance Minister Bezalel Smotrich announced that work would start on a long-delayed settlement that would divide the West Bank and cut it off from East Jerusalem, a move his office said would "bury" the idea of a Palestinian state.
The Palestinian government, allies and campaign groups condemned the scheme, calling it illegal and saying the fragmentation of territory would rip up peace plans for the region.
The European Union rejects any territorial change involving Israel and Gaza that is not part of a political agreement, a European Commission spokesperson said in response to questions on Thursday.
Standing at the site of the planned settlement in Maale Adumim on Thursday, Smotrich, a settler himself, said Prime Minister Benjamin Netanyahu and US President Donald Trump had agreed to the revival of the E1 development, though there was no immediate confirmation from either.
"Whoever in the world is trying to recognise a Palestinian state today will receive our answer on the ground. Not with documents nor with decisions or statements, but with facts.
Facts of houses, facts of neighbourhoods," Smotrich said.
Asked about his remarks, a US State Department spokesperson said: "A stable West Bank keeps Israel secure and is in line with this administration's goal to achieve peace in the region," and referred reporters to Israel's government for further information.
The spokesperson said Washington remained primarily focused on ending the war in Gaza.
The United Nations urged Israel to reverse its decision to start work on the settlement.
"It would put an end to prospects of a two-state solution," UN spokesperson Stephane Dujarric told reporters. "Settlements go against international law … (and) further entrench the occupation."
Israel froze construction plans at Maale Adumim in 2012, and again after they were revived in 2020, amid objections from the US, European allies and other powers who considered the project a threat to any future peace deal with the Palestinians.
Restarting the project could further isolate Israel, which has watched some of its Western allies condemn its military offensive in Gaza and announce they may recognise a Palestinian state.
Palestinians fear the settlement building in the West Bank - which has sharply intensified since the 2023 Hamas attack on Israel that led to the Gaza war - will rob them of any chance to build a state of their own in the area.
The United Arab Emirates is continuing its humanitarian support for the Palestinian people in the Gaza Strip, today carrying out its 71st airdrop of aid under Operation Birds of Goodness, part of Operation Chivalrous Knight 3, in cooperation with the Hashemite Kingdom of Jordan, and with the participation of Germany, Italy, Belgium, and France.
The shipment included quantities of essential food supplies, prepared with the support of UAE-based charitable institutions and entities, to meet the needs of residents amid the difficult humanitarian conditions in the Strip.
The UAE also delivered a shipment of medicines and medical supplies to the health sector.
The aid will be distributed to hospitals and medical facilities to help address acute shortages and strengthen their ability to respond to emergencies. Among the recipients was Nasser Medical Complex in Khan Younis, which received several truckloads carrying essential medicines and critical supplies.
Arab nations have slammed comments by Israeli Prime Minister Benjamin Netanyahu apparently expressing support for the idea of an expanded "Greater Israel", calling the remarks a threat to their sovereignty at an especially tense time for the region.
Jordan condemned the prime minister's Greater Israel remarks as a "dangerous and provocative escalation" and "a threat to the sovereignty of states".
A spokesman for its foreign ministry went on to reject what he called Netanyahu's "inflammatory" rhetoric and "delusional claims".
Egypt also said on Wednesday that it had "requested clarification on this matter", characterising it as tantamount to a "rejection of the option of peace in the region".
Mossad spy chief David Barnea is visiting Qatar to revive Gaza peace talks, two Israeli officials told Reuters on Thursday.
The visit follows a reported expression of eagerness by Hamas for a swift return to Gaza ceasefire negotiations during a meeting with Egypt's intelligence chief in Cairo.
Agencies