Five major Western allies have issued a joint condemnation of Israel's decision to open commercial tenders for more than 1,200 settlement homes in a strategically critical corridor of the occupied West Bank.

In a joint statement published on Thursday, the UK, France, Germany, Italy and Canada warned that moving forward with the E1 project east of Jerusalem would "further undermine Israel's international standing" and push the region further from peace. The group noted that the decision comes at a time of "grave instability in the West Bank with unprecedented levels of violence by settlers against civilians, and serious restrictions on the Palestinian economy".

Separately, both the United Nations secretary general and Belgium's foreign minister warned that constructing homes across the E1 area poses an "existential threat" to a contiguous Palestinian state.

The diplomatic backlash follows the Israeli housing ministry's move on Wednesday to issue tenders for 1,234 housing units. These form the first batch of 3,401 homes approved by the Israeli government last August. When the broader package was first unveiled, ultranationalist Finance Minister Bezalel Smotrich declared that the idea of a Palestinian state was "being erased".

All settlements in occupied territory are illegal under international law. Israel had held off on developing E1 for decades under intense international pressure because of the area's geography. Opponents and Palestinian leaders have long pointed out that building there would sever the northern and southern West Bank, cut off East Jerusalem, and make a contiguous Palestinian state unviable.

The tenders have gone ahead despite an active Israeli court challenge brought by local Bedouin Palestinians and Israeli peace groups. The commercial bidding window closes on 19 October, just days ahead of Israel's general election on 27 October, which would make any awarded contracts difficult for a future government to overturn.

Israel has built around 160 settlements housing roughly 700,000 Jewish residents since capturing the West Bank and East Jerusalem in the 1967 Middle East war. Approximately 3.3 million Palestinians live in the territory, which they seek alongside Gaza for an independent state.

Settlement expansion has accelerated sharply since Prime Minister Benjamin Netanyahu returned to power in late 2022 at the head of a pro-settler coalition, continuing throughout the Gaza war triggered by Hamas's 7 October 2023 attack.

I will continue to monitor whether this concerted diplomatic push and the ongoing legal challenge have any impact on the October tender deadline.