Belgium condemns Israel’s E1 settlement expansion in West Bank

Belgium has formally condemned Israel’s plan to expand the E1 settlement east of Jerusalem, joining a chorus of European governments pushing back against what the EU and UN describe as a violation of international law. The E1 project, long opposed by Western governments, sits in occupied West Bank territory that Palestinians seek as part of a future state. European criticism has intensified through 2026 as Israeli authorities have advanced multiple new settlement measures. Pricing across related Palestine-recognition markets appears consistent with modest upward pressure on YES probabilities, though current odds remain low. Key Takeaways Markets pricing US recognition of Palestine before 2027 at roughly 6% YES, suggesting participants view the development as unlikely within the window despite diplomatic pressure. Italy’s sub-market sits at 13.5% YES — down from 16% seven days ago — pricing supportive of NO outcome despite broader European condemnation of Israeli settlement activity. Belgium’s condemnation appears consistent with growing European diplomatic pressure, but stops short of formal recognition, limiting its direct impact on resolution criteria. What to Watch Watch for any...