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.

Location of E1 is significant because it is one of the last geographical links between Bethlehem and Ramallah.

United Nations condemns Israel’s move to grant approval for building more than 3,400 housing units in occupied territory, warning it threatens two-state solution