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The United States warned on Friday that "unrestrained" building of settler homes could hinder peace, after Israel approved a new settlement in the occupied West Bank for the first time in a quarter century.
The Palestinians reacted angrily at what is widely seen as the most right-wing government in Israeli history presses ahead with settlement expansion in defiance of international concern.
US President Donald Trump's administration refrained from criticising the new settlement, which was approved by the Israeli security cabinet late Thursday, but warned that further expansion could undermine peace efforts.
"While the existence of settlements is not in itself an impediment to peace, further unrestrained settlement activity does not help advance peace," a White House official said.
"Going forward... the Israeli government has made clear that Israel's intent is to adopt a policy regarding settlement activity that takes President Trump's concerns into consideration." A spokesman for UN chief Antonio Guterres expressed "disappointment and alarm" at the Israeli announcement.
EU foreign policy chief Federica Mogherini said the new settlement building threatens "to further undermine prospects for a viable two-state solution, which remains the only realistic way to fulfil the aspirations of both sides and achieve just and lasting peace."
Senior Palestinian official Saeb Erekat said Israel "continues to destroy the prospects of peace."
He also criticised the United Nations, European Union and United States for not doing enough to punish Israel for continuing to expand settlements in the West Bank. "Peace is not going to be achieved by tolerating such crimes," he said.
More than 400,000 Israelis live in existing settlements considered illegal under international law.
The new settlement will be constructed north of the former wildcat Jewish outpost known as Amona, which was razed in February in accordance with an Israeli High Court order.
Prime Minister Benjamin Netanyahu had promised to build a new settlement for its residents after their eviction. "I promised to create a new community and we are going to respect that commitment and create it today," he said.
Oded Revivi, chief foreign envoy for the umbrella body representing settlers, welcomed the decision.
"We will be monitoring the government very closely to see that these plans come to fruition, enabling a new era of building," he said in a statement. Agriculture minister Uri Ariel also welcomed the announcement.
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