Israel’s far-right finance minister said Thursday that a contentious new settlement construction in the Israeli-occupied West Bank is going ahead — a project that Palestinians and rights groups worry will scuttle plans for a Palestinian state by effectively cutting the territory into two parts.

Israel said Thursday it was moving forward with controversial plans to build thousands of new housing units in the occupied West Bank, a development far-right Finance Minister Bezalel Smotrich said would “permanently bury the idea of a Palestinian state.

Smotrich’s settlement plans come as the international spotlight on Israel intensifies, with growing calls for a cease-fire in the Israel-Hamas war amid mass concerns over the ongoing malnutrition crisis in Gaza and backlash over Netanyahu’s plan to fully occupy the Gaza Strip.