Saudi Arabia and the Arab League strongly condemn Israel's decision to expand illegal settlements in the occupied West Bank.
The Israeli Security Cabinet approved a plan to legalize outposts and build new housing units, while imposing sanctions on the Palestinian Authority.
Critics view this as a violation of international law and a reversal of the Oslo Accords.
The move is seen as entrenching occupation and undermining peace efforts, with warnings of "dire consequences" if Israel proceeds with the expansion plans.
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