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Home World Middle East

Israel opens up bids for highly sensitive West Bank settlement project

August 20, 2026
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Israel’s foreign minister responded harshly to Miliband’s statement, which he said he “reject[ed] outright”.

Israel has built about 160 settlements housing 700,000 Jews since it occupied the West Bank and East Jerusalem – land Palestinians want, along with Gaza, for a hoped-for future state – during the 1967 Middle East war. An estimated 3.3 million Palestinians live alongside them.

Despite the fierce international opposition, successive Israeli governments have allowed settlements to grow.

However, expansion has risen sharply since Prime Minister Benjamin Netanyahu returned to power in late 2022 at the head of a right-wing, pro-settler coalition, as well as the start of the Gaza war, triggered by Hamas’s 7 October 2023 attack on Israel.

Under international pressure, Israel held off for decades on plans to build in E1.

Many of its allies and Palestinians argued these would deal a major blow to hopes of a two-state solution, effectively bisecting the West Bank.

But the current Israeli government gave the go-ahead for E1 construction a year ago, expressly to “erase” the idea of a Palestinian state.

Despite an Israeli court challenge to the plans by Bedouin Palestinians living in the area and Israeli peace groups, the housing ministry has now issued a tender for 1,234 of the 3,401 housing units approved by the Israeli government last August.

It covers about 12 sq km (4.6 sq miles) between East Jerusalem and the settlement of Maale Adumim.

At the time of their unveiling, Finance Minister Bezalel Smotrich – an ultranationalist and settler – said the idea of a Palestinian state was “being erased”.

The deadline for bids is 19 October, just days before Israel’s general election on 27 October, making it much harder for any future government to overturn any tenders issued.

In a statement published on Wednesday evening, the UK’s foreign secretary said “Britain will not stand back and accept the destruction of the Two-State Solution”.

“The UK has been clear privately and publicly in our opposition to E1 and our support for a two-state solution,” said Miliband, adding that “all settlements damage that prospect and are a flagrant breach of international law”.

Miliband said the Israeli Chargé d’Affaires had been summoned to the Foreign Office, where he had “set out the UK’s profound objection to this move by the Netanyahu government and demanded an immediate reversal”.

Miliband added that “in the coming weeks” the British government would “set out a comprehensive set of measures to respond to Israeli government policies, protect the viability of the Palestinian state, target sanctions at those who participate in illegal settlement expansion and support a just and lasting peace for Israelis and Palestinians.”



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