Israel gave final approval Wednesday for a controversial settlement project in the occupied West Bank that would effectively cut the territory in two, and that Palestinians and rights groups say could destroy hopes for a future Palestinian state.

Israeli approval of the E1 settlement project in the West Bank has sparked controversy, with critics saying it threatens Palestinian statehood hopes. Despite international condemnation and previous U.

Israel gave final approval to a 'controversial' settlement project that would divide the occupied West Bank and isolate East Jerusalem.