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Portugal says Israel undermining Palestinian state through settlement expansion - Finance news and analysis from Global Banking & Finance Review
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Portugal says Israel undermining Palestinian state through settlement expansion

Published by Global Banking & Finance Review

Posted on September 14, 2026

2 min read

· Last updated: September 14, 2026

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Portugal Warns Israel's Settlements Undermine Palestinian State Prospects

Portugal's Concerns Over Israeli Policies and Regional Stability

LISBON, Sept 14 (Reuters) - Portugal's foreign minister said on Monday that Israeli settlement expansion and economic pressure in the occupied West Bank and East Jerusalem were undermining prospects for a viable Palestinian state.

Statements from Foreign Minister Paulo Rangel

Criticism of the E1 Settlement Plan

• Foreign Minister Paulo Rangel said Israel's E1 settlement plan was "extremely pernicious" because it would divide the West Bank, isolate East Jerusalem and was incompatible with a two-state solution.

Economic Measures and Their Impact

• Israel's withholding of Palestinian tax revenues amounted to a "brutal strangulation" of the Palestinian Authority's finances, preventing the economy from functioning, he said after meeting Palestinian Foreign Minister Varsen Aghabekian Shahin in Lisbon.

Humanitarian and Social Concerns

Closure of Christian Schools

• Rangel also cited the closure of Christian schools in East Jerusalem as evidence of worsening conditions there.

Portugal's Recognition of Palestine

• Portugal recognised the State of Palestine a year ago.

Path Forward: The Two-State Solution

• Rangel said the two-state solution was the only way to guarantee peaceful coexistence between Israelis and Palestinians.

Recent Diplomatic Developments

• Israel said last week it was closing Britain's consulate in East Jerusalem in response to plans by the UK, France and Canada to block imports from Israeli settlements in the West Bank.

(Reporting by Sergio Goncalves; editing by Charlie Devereux and Ros Russell)

Key Takeaways

  • The E1 settlement project near East Jerusalem threatens Palestinian territorial contiguity and is widely viewed as fatal to the two‑state solution (irishtimes.com)
  • Israel’s withholding of Palestinian tax revenues is crippling the Palestinian Authority’s finances and economy, described by Portugal as a “brutal strangulation”
  • Portugal, having recognized the State of Palestine a year ago, reaffirms the two‑state solution as the only path to lasting peace

References

Frequently Asked Questions

What did Portugal say about Israel's settlement expansion?
Portugal's foreign minister said Israeli settlement expansion is undermining prospects for a viable Palestinian state.
How does Israel's E1 plan affect the West Bank?
The E1 settlement plan would divide the West Bank and isolate East Jerusalem, making a two-state solution harder.
What economic pressures did Israel impose on the Palestinian Authority?
Israel is withholding Palestinian tax revenues, which Portugal calls 'brutal strangulation' of the Palestinian Authority's finances.
What recent actions has Portugal taken regarding the Palestinian state?
Portugal recognized the State of Palestine a year ago and supports a two-state solution.
Why did Israel close Britain's consulate in East Jerusalem?
Israel closed the consulate in response to UK, France, and Canada blocking imports from Israeli settlements in the West Bank.

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