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.

An Israel Defense Ministry planning committee gave approval Wednesday to a controversial settlement plan that would effectively split the West Bank in two.

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.