Standing at the site of the planned settlement in Maale Adumim on Thursday, Smotrich, a settler himself, said Prime Minister Benjamin Netanyahu and U.S. President Donald Trump had agreed to the revival of the E1 development, though there was no immediate confirmation from either.

TEL AVIV, (Reuters) -Israeli far-right Finance Minister Bezalel Smotrich approved plans overnight for a settlement that would split East Jerusalem from the occupied West Bank, a move his office said would bury the idea of a Palestinian state.

Saudi Arabia has strongly condemned Israel's approval of plans to build settlements around Jerusalem, saying that it represents a continuation of "the illegal expansionist policies of the Israeli government".