In addition to the new settlement homes, Israel also moved ahead with a plan to complete a Jerusalem settlement that will entrench its splitting of the West Bank in half, further eroding any remote chance of a viable Palestinian state. Israel says the area known as “E1” — which connects Israeli land with the settlement of Ma’ale Adumim — will see further development, cutting off the northern West Bank from the south as well as from East Jerusalem. Hagit Ofran of the Israeli group Peace Now said the completion of E1 would mark a death knell for a two-state solution.

Hagit Ofran: “The construction in E1 is at the heart of the potential Palestinian state. If Israel is to build in E1, there is no possible agreement on a two-state solution, because a Palestinian state will be cut between the south and the north of the state, and it won’t be a viable state.”

The new construction comes in a record year for Israeli settlement building. According to Peace Now, Israel has authorized more settlements in 2012 than in any year over the past decade. Israel followed up the announcement of new settlements by seizing over $120 million in tax revenues collected for the Palestinian Authority. Returning to the West Bank on Sunday, Palestinian Authority President Mahmoud Abbas criticized Israel and celebrated the U.N. vote as a victory for the Palestinian cause.

Palestinian Authority President Mahmoud Abbas: “Yes, now we have a state. Congratulations to all of you brave Palestinians. You alone have accomplished this achievement and alone have won this victory.”