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 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…

Location of E1 is significant because it is one of the last geographical links between Bethlehem and Ramallah.