One ongoing obstacle to peace between Israel and Palestinian Arabs is the issue of settlements in the occupied territories. Israeli settlement construction in areas that Palestinians envision as part of their future state is a major source of tension and conflict. The Israeli government continues to build and expand settlements, which are seen as illegal under international law, while Palestinians claim that this expansion undermines any possibility for a contiguous Palestinian state. The continued expansion of settlements creates an obstacle to reaching a mutually agreed-upon resolution and leads to increased animosity and hostilities between the two sides.
