Israel gave final approval Wednesday for a controversial settlement project in the occupied West Bank that would effectively cut the territory in two, and that Palestinians and rights groups say could destroy hopes for a future Palestinian state.

Israel has given final approval for a controversial settlement project in the occupied West Bank in a significant blow to the prospects of Palestinian statehood. Settlement development in E1, an open tract of land east of Jerusalem,

Construction in E1 is expected to begin immediately, while Ashahel’s plan reaches the deposit stage, a key step toward final approval. Israel’s Civil Administration approved major construction projects in West Bank,