This photo taken on Aug. 14, 2025 shows a view of the E1 area, a stretch of land east of Jerusalem between the city and the settlement of Ma'ale Adumim. [Photo/Xinhua]

European Union (EU) foreign policy chief Kaja Kallas on Thursday urged Israel to drop plans to advance settlement construction in the E1 area of the occupied West Bank, warning the move would violate international law and irreparably damage prospects for a two-state solution.

"If implemented, settlement construction in this area will permanently cut the geographical and territorial contiguity between occupied East Jerusalem and the West Bank and sever the connection between the northern and southern West Bank," Kallas said in a statement.

She said Israel's settlement policy, including demolitions, forced transfers, evictions and home confiscations, must end, adding that such measures, along with settler violence and military operations, were fuelling tensions and eroding the possibility of peace.

The EU "urges Israel to desist from taking this decision forward, noting its far-reaching implications and the need to consider action to protect the viability of the two-state solution," Kallas said.

The E1 area, a stretch of land east of Jerusalem between the city and the settlement of Ma'ale Adumim, is regarded as especially contentious because construction there would effectively cut off East Jerusalem from the northern West Bank. Plans for building in the area have been frozen for years, largely due to international opposition.