Egypt rejects annexation of Palestinian lands; Western powers demand E1 plan retraction

CAIRO – 22 August 2026: Egypt has strongly warned against Israel’s E1 settlement project in the occupied West Bank, saying it threatens Palestinian territorial continuity and isolates East Jerusalem from its Palestinian surroundings.

During a phone call with Palestinian Prime Minister Mohammad Mustafa, Egyptian Foreign Minister Badr Abdelatty reiterated Cairo’s categorical rejection of any attempts to annex Palestinian territory, displace Palestinians or alter the legal and demographic status of the occupied territories.

He warned that such measures would entrench a policy of fait accompli and undermine prospects for establishing a Palestinian state.

The remarks came as the E1 plans drew renewed international opposition after Israel published tenders for more than 1,200 housing units in the strategically located area east of Jerusalem.

The project has long faced international condemnation over concerns that it could drive a wedge through the West Bank and further undermine the two-state solution.

In a joint statement, the United Kingdom, France, Germany, Italy, Canada, the Netherlands and Norway described Israel’s decision to publish the tenders as “unacceptable.”

The seven nations called on the Israeli government to “retract these plans immediately” and halt settlement expansion.

The countries also warned that the E1 project would undermine the prospects of a two-state solution by disrupting the territorial continuity of the West Bank.

“At a time of grave instability in the West Bank with unprecedented levels of violence by settlers against civilians, and serious restrictions on the Palestinian economy, this decision is even more concerning,” the statement read.

The nations also urged companies not to bid for the construction tenders, warning of legal and reputational consequences arising from involvement in serious breaches of international law.

“They should be aware of legal and reputational consequences including the risk of involving themselves in serious breaches of international law.

The seven countries reaffirmed their support for a comprehensive and lasting peace based on a two-state solution.

Abdelatty and Mustafa also addressed developments in the Gaza Strip and Egypt’s efforts, in coordination with the mediators, to advance the implementation of the roadmap and the commitments under US President Donald Trump’s peace plan.