Israel gave final approval for a settlement project in the occupied West Bank that would effectively cut the territory in two, which Palestinians say could dash hopes for a future Palestinian state.

L ONDON -- A controversial Israeli settlement plan that would effectively split the West Bank in two is gaining momentum after a key government committee -- the Higher Planning Committee of the Civil Administration under the Defense Ministry -- gave its approval.

Israel said Thursday it was moving forward with controversial plans to build thousands of new housing units in the occupied West Bank, a development far-right Finance Minister Bezalel Smotrich said would “permanently bury the idea of a Palestinian state.