How Israeli settlements undermine Palestinian statehood: 'Entire West Bank belonged to Israel'

Even as Israel becomes increasingly diplomatically isolated, with many of its traditional allies openly endorsing the idea of Palestinian statehood, Prime Minister Benjamin Netanyahu has declared that no Palestinian state will ever be created west of the Jordan River, a statement that directly rejects the international consensus on a two-state solution. It also reflects the longstanding position of the Israeli far right that  “Jordan is Palestine”. A week ago, while approving an expansion plan for the Maale Adumim settlement near Jerusalem, Netanyahu made it clear that the entire West Bank belonged to Israel and that Palestinian statehood was out of the question.

Apart from the shrill rhetoric, the Netanyahu administration is also taking concrete steps on the ground to further diminish the viability of a future Palestinian state, egged on by its far-right coalition partners, which are closely aligned with the settler movement. These groups openly advocate full annexation of the West Bank, a step that would shut down the prospects of an independent Palestinian state completely. Following the recent recognition of Palestinian statehood by several Western governments, senior Israeli ministers have warned of drastic action. National Security Minister Itamar Ben-Gvir threatened to dismantle the Palestinian Authority altogether, while pledging to press for the application of Israeli sovereignty over the West Bank. They are putting pressure on Netanyahu to go ahead with some form of annexation, whether partial or complete.

The political momentum behind annexation is closely tied to the continuing expansion of Israeli settlements in the West Bank. The number of Jewish settlers living there has already reached around half a million, compared with an estimated three million Palestinians. New Jewish housing projects are coming up, which further erode the possibility of territorial contiguity for a Palestinian state. In the past year alone, Israel put in place plans for more than 20,000 new settlement housing units in the West Bank, which is almost twice the annual peak recorded in recent years. Settler leaders have openly declared that the purpose of the expansion is to rule out the possibility of a Palestinian state.

One of the most controversial projects in this regard is the proposed E1 settlement plan, which would connect existing settlements with other Israeli-controlled zones and cut across the West Bank, separating it from East Jerusalem. That would divide the West Bank into two separate northern and southern entities, leaving any future Palestinian state territorially fragmented and politically unviable. Israel’s far-right finance minister, Bezalel Smotrich, has been blunt in his assessment, saying that he hoped that the E1 project would bury the very idea of Palestinian statehood.

Apart from settlement expansion, Israel maintains a tight system of control that restricts Palestinian mobility and accessibility. Nearly 60 per cent of the West Bank is designated as Area C (under the Oslo accords), where Israel retains full military and administrative authority. Palestinians are often denied even basic building permits in these areas.

The diplomatic recognition of the Palestinian state by several Western governments should be looked at against the backdrop of these developments, and of course, the ongoing Gaza war. France, Britain, Canada, Australia, and Portugal have all recently extended formal recognition, joining more than 150 other United Nations member states. Pro-Palestine voices say that recognition helps to preserve the two-state framework and may revive momentum for peace talks. Yet for many Palestinians, such steps feel symbolic, given that the territorial and political conditions on the ground continue to deteriorate.

The future trajectory of this conflict will also be determined by the positions adopted by the United States and the Arab states. Arab governments are lobbying Washington intensively, urging it to reject any recognition of Israeli sovereignty over West Bank settlements. They warn that such a step would destroy the already fragile two-state framework. Saudi Arabia, a key player in the wider process of normalisation with Israel, has warned that annexation of the West Bank represents a red line. It would pose a major challenge for the United States, which remains Israel’s most important strategic ally.

The growing international recognition of Palestinian statehood shows the persistence of global support for a negotiated settlement for the Arab-Israeli conflict based on the two-state solution. Yet the realities on the ground tell a different story.