The United States on Thursday responded to Israeli far-right Finance Minister Bezalel Smotrich's announcement that work would start on a long-delayed settlement plan that would divide the West Bank, stating that a stable West Bank aligns with the Trump administration's goal for peace in the region.

Asked about Smotrich's statement that Israeli Prime Minister Benjamin Netanyahu and US President Donald Trump had agreed to the revival of the so-called E1 development, a spokesperson for the US State Department said the US remained focused on ending the war in Gaza and ensuring Hamas will never govern that territory again.

"A stable West Bank keeps Israel secure and is in line with this administration's goal to achieve peace in the region," the spokesperson said, while referring to the Israeli government for further information.

The position is a reversal of previous US administrations that have warned against building projects in the West Bank, saying they harm chances of a two-state solution.

The United Nations also reacted to Smotrich, urging Israel to cancel its decision to begin work on the long-delayed settlement plan, UN spokesperson Stephane Dujarric said Thursday.

An Israeli flag flutters, as part of the Israeli settlement of Maale Adumim is visible in the background, in the West Bank, August 14, 2025.
An Israeli flag flutters, as part of the Israeli settlement of Maale Adumim is visible in the background, in the West Bank, August 14, 2025. (credit: REUTERS/Ronen Zvulun)

"It would put an end to prospects of a two-state solution," Dujarric told reporters.

"Settlements go against international law… further entrench the occupation."

British Foreign Secretary David Lammy issued a similar response, saying these Israeli plans marked a breach of international law and must be stopped immediately.

"The UK strongly opposes the Israeli government's E1 settlement plans, which would divide a future Palestinian state in two and mark a flagrant breach of international law. The plans must be stopped now," Lammy said in an emailed statement.

Smotrich approves of E1 plan

On Wednesday night, Smotrich said he had approved the new E1 settlement plan, which would split east Jerusalem from the West Bank. 

The plan, which calls for the construction of 3,401 new housing units in Ma'aleh Adumim, located in the West Bank, "will bury the idea of a Palestinian state,” Smotrich said.

Although the announcement was made public, there has been no official confirmation regarding the approval of the plan.

Previous housing projects, which were heavily promoted at launch, have been delayed for years.

Amichai Stein contributed to this report.