JERUSALEM: Israel approved a major settlement project on Wednesday in an area of the occupied West Bank that the international community has warned threatens the viability of a future Palestinian state. Israel has long had ambitions to build on the roughly 12-square-kilometer (five-square-mile) parcel known as E1 just east of Jerusalem, but the plan had been stalled for years amid international opposition. Critics say the settlement would effectively cut the West Bank in two, undermining hopes for a contiguous Palestinian state with east Jerusalem as its capital.

Approval granted for controversial E1 settlement project in West Bank, threatening Palestinian statehood and peace efforts.

Israel on Wednesday gave final approval to settlement construction plans in the E1 area, which would sever the northern West Bank from the south. The long-disputed plans, delayed…