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Portugal says Israel undermining Palestinian state through settlement expansion

By Thomson Reuters Sep 14, 2026 | 11:26 AM

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.

• 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.

• 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.

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

• Portugal recognised the State of Palestine a year ⁠ago.

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

• 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)