Prime Minister Benjamin Netanyahu traveled to Judea and Samaria on Tuesday to celebrate the US's announcement that it does not consider Israeli settlements to violate international law.
Netanyahu called the Trump administration's declaration, which stepped back from four decades of US policy and reversed the policies of President Barack Obama, a "huge achievement" that "fixed a historic wrong."
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"I think it is a great day for the state of Israel and an achievement that will remain for decades," he said.
Netanyahu spoke at a gathering of ecstatic supporters and settler leaders in Alon Shvut, a community in the Gush Etzion bloc outside of Jerusalem.
Israeli right-wing leaders welcomed US Secretary of State Mike Pompeo's announcement. Although it is largely symbolic, it fueled calls from settler supporters for increased construction or even the annexation of parts of Judea and Samaria.
Later Tuesday, Netanyahu said the US decision "gives us a once-in-a-lifetime opportunity" to annex the Jordan Valley. In a video, he called on his political rivals, with whom he is currently in coalition talks, to form a unity government and make annexing the area its first priority.
Netanyahu has previously vowed to annex the area, a move that would swallow up most of the territory claimed by the Palestinians for a future state, leaving them with little more than isolated enclaves.
The Palestinians condemned the US decision. They and other countries said the move undercuts any chances of a broader peace deal.
Over 400,000 Jews now live Judea and Samaria, in addition to more than 200,000 in east Jerusalem, which the Palestinians say they want as a future capital.
The Palestinians and the international community say that settlements are illegal and prevent the establishment of a Palestinian state. Israel says the fate of the settlements should be determined in negotiations.
The head of the Arab League joined the large number of critics, condemning the Trump administration's latest decision "in the strongest terms."
The league's secretary-general, Ahmed Aboul Gheit, said the decision would result in "more violence and cruelty" against the Palestinians at the hands of the Israeli settlers and "undermines any possibility" of achieving peace.
The White House says it has developed a Mideast peace plan, but it has not yet unveiled it. The Palestinians already have rejected the plan, accusing the US of unfair bias in favor of Israel.
The Trump administration has made a number of moves in favor of Israel, recognizing Jerusalem as Israel's capital, recognizing Israel's annexation of the Golan Heights and shuttering Palestinian diplomatic offices in Washington.