MAALE ADUMIM, West Bank (AP) — Israel’s far-right finance minister announced approval Thursday of contentious new settlement construction in the Israeli-occupied West Bank, which Palestinians and rights groups worry will scuttle plans for a Palestinian state by effectively cutting the territory into two parts.

Finance Minister Bezalel Smotrich boasted that the construction, which is expected to receive final approval later this month, could thwart Palestinian statehood plans. It came as many countries, including Australia , Britain, France, and Canada say they will recognize a Palestinian state in September.

The construction on a tract of land east of Jerusalem named E1 has been has been under consideration for more than two decades, and is especially controversial because it is on

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