The long-stalled project near Jerusalem, known as E1, further fragments West Bank lands envisioned as part of a Palestinian state, advancing a goal of Israeli hard-liners.

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.

TEL AVIV, (Reuters) -Israeli far-right Finance Minister Bezalel Smotrich approved plans overnight for a settlement that would split East Jerusalem from the occupied West Bank, a move his office said would bury the idea of a Palestinian state.