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Jerusalem Settlement Expansion Sparks Tensions Amid Regional Unrest

Israeli settlement plans, rising West Bank violence, and shifting political dynamics deepen uncertainty across Jerusalem, Gaza, and the wider Middle East.

7 min read

On January 12, 2026, a series of developments across Israel, the West Bank, Gaza, and the broader Middle East painted a picture of escalating tensions, shifting political dynamics, and deepening humanitarian crises. From settlement expansions in East Jerusalem to rising violence in the West Bank and mounting international condemnation of regional repression, the events of the day underscored the complex and often volatile landscape that defines this part of the world.

In a move that has alarmed Palestinian officials and international observers alike, the Jerusalem governorate announced that Israeli authorities are set to discuss the approval of two major settlement projects in occupied East Jerusalem. The most significant of these is the proposal for 9,000 settlement units on the ruins of the Qalandiya airport, also known as Atarot. A separate project in the Sheikh Jarrah neighborhood aims to displace 40 Palestinian families, raising fears of further demographic and geographic fragmentation in the city.

According to Al Jazeera, the Atarot plan had been briefly shelved in December 2025 but has now resurfaced, a development that Suhail Khalilieh, a political analyst and expert on Israeli settlements, attributes to changing geopolitical winds. Khalilieh pointed to the recent meeting between Israeli Prime Minister Benjamin Netanyahu and U.S. President Donald Trump as a turning point. "The meeting ... served as a green light for continued settlement expansion," Khalilieh told Al Jazeera. He added, "The American position, which treats Jerusalem as being outside any negotiation process ... has encouraged the occupation to put this project into direct implementation." Khalilieh lamented the international community's response, noting it had been reduced to "verbal objections without any deterrence."

The Atarot project is not just about housing, Khalilieh explained. Strategically, it is designed to link East Jerusalem with the Givat Zeev settlement bloc, effectively severing the city from Ramallah and undermining prospects for a contiguous Palestinian state. This expansion is part of a broader "Greater Jerusalem" vision, which also includes the E1 plan to the east (connecting East Jerusalem with the Maale Adumim bloc) and southern expansions toward Gush Etzion. "This will increase the area of Jerusalem ... by adding 175sq km [68sq miles]," Khalilieh said. "The current area of East Jerusalem, according to the Israeli definition, is 71sq km [27sq miles]. With these additions, Greater Jerusalem under Israeli control will reach 246sq km [95sq miles], 4.5 percent ... of the West Bank’s area, aiming to abort any possibility of establishing a Palestinian capital in East Jerusalem."

Meanwhile, the "Nahalat Shimon" plan in Sheikh Jarrah targets the historic "Holy Basin" north of the Old City. Khalilieh described this as part of longstanding Israeli efforts to expand the settlement ring around the Old City, further isolating Palestinian neighborhoods such as Silwan, the Mount of Olives, and Sheikh Jarrah. "Today, the takeover of the Old City has begun through this ring ... aiming to empty these areas gradually through intensified demolitions," he observed.

Beyond the physical reshaping of the city, Palestinians in East Jerusalem face mounting pressures through policy changes and administrative actions. More than 300 Palestinian homes were demolished in East Jerusalem in 2025 alone, according to Al Jazeera. The unification of the Arnona property tax, which forces residents of neglected Palestinian neighborhoods to pay the same high rates as those in affluent Israeli areas, has only added to the cumulative pressure to leave. Khalilieh characterized this as a "silent forced transfer," warning that "development for Israelis means demolishing Palestinian homes under the guise of ‘building without a permit.’"

Against this backdrop, violence and unrest continue to surge across the region. Data from the Israeli defense establishment, as reported by Haaretz, revealed that since October 7, 2023, the number of nationalist crimes committed by Jews against Palestinians in the West Bank has risen sharply, with 1,720 incidents recorded. In 2025 alone, 845 such incidents were documented, resulting in 200 injuries and four deaths—a 25 percent increase from 2024. Senior Israeli Defense Forces (IDF) commanders have expressed concern over the Israel Police and Shin Bet’s ability to curb the violence, warning that the army may need to divert significant resources to maintain order if the trend continues.

The violence is not confined to the West Bank. In Gaza, the humanitarian toll continues to mount. The Gaza Ministry of Health reported the deaths of a seven-day-old baby and a four-year-old child from cold exposure, bringing the number of children who have died from cold during the current winter to six. The ministry also reported that five bodies were recovered from rubble and four people were wounded, highlighting the ongoing crisis faced by civilians in the enclave.

Elsewhere in the region, international actors weighed in on unfolding events. German Chancellor Friedrich Merz condemned "in the strongest terms the violence that the leadership in Iran is directing against its own people," calling for an end to what he described as "disproportional, brutal violence." Merz praised the courage of Iranian demonstrators and urged the Iranian leadership to "protect its population rather than threatening it." Canada echoed these sentiments, stating it "stands with the brave people of Iran" and condemning the regime’s repression. China, meanwhile, emphasized its opposition to the use of force in international relations and expressed hope for Iran’s stability, with Foreign Ministry spokesperson Mao Ning stating that Beijing "always opposes interference in other countries' internal affairs."

Back in Israel, domestic politics remain fraught. The coalition government is advancing a controversial bill to abolish the offense of fraud and breach of trust—the very charges currently facing Prime Minister Netanyahu in all his criminal cases. Lawmakers sponsoring the bill have argued that the offense is "a catchall offense that severely undermines the principle of legality and the foundations of criminal law," and that its "vague nature" invites "selective and biased enforcement." The measure is set for discussion in the Ministerial Committee for Legislation in the coming week.

Adding to the political intrigue, Israel Police admitted for the first time that Srulik Einhorn, a former associate of Netanyahu embroiled in the Qatargate affair, is a fugitive criminal with an outstanding arrest warrant. This admission came as part of a court submission related to restrictions placed on Netanyahu adviser Yonatan Urich. Meanwhile, Netanyahu’s chief of staff, Tzachi Braverman, was detained by police, barred from the Prime Minister’s Office for 15 days, and prohibited from leaving the country for a month.

Internationally, the United States is considering financing Israel’s new armored-vehicle production plant with up to $2 billion from U.S. military aid funds, even as Israel has expressed intentions to reduce its reliance on American assistance. In the legal realm, three Israeli residents were sentenced to 36-40 months in prison for looting property left behind at the Nova music festival site on October 8, 2023, a day after the deadly Hamas attack. The judge described their actions as "extreme, shallow and unforgivable opportunism, carried out under the cover of the chaos of a murderous terror attack," calling them a "complete betrayal of human dignity and social solidarity."

As the region faces mounting challenges from political maneuvering, settlement expansion, violence, and humanitarian crises, the need for effective intervention—legal, diplomatic, or otherwise—has rarely felt more urgent. The events of January 12, 2026, serve as a stark reminder of just how high the stakes remain for all those living in and around Jerusalem, Gaza, and the broader Middle East.

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