TEL AVIV, Israel -- Israel gave final approval Wednesday for a contentious 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.

Also Wednesday, Israel's military said it will call up 60,000 reservists ahead of an expanded military operation in Gaza City. Many residents have chosen to stay despite the danger, fearing nowhere is safe in a territory facing shortages of food, water and other necessities.

Settlement development in E1, an open tract of land east of Jerusalem, has been under consideration for more than two decades, but was frozen because of U.S. pressure during previous administrations. The international community overwhelmingly considers Isra

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