The UK has summoned Israel's Chargé d'Affaires over the E1 settlement tender, demanding an immediate reversal.

Foreign Secretary Ed Miliband called the move "an unacceptable and destructive act" that risks cutting the West Bank off from East Jerusalem and killing a two-state solution. Britain says it will announce measures in the coming weeks, including sanctions on those involved in settlement expansion.

Israeli FM Gideon Sa'ar rejected the statement outright: "The Jewish people have the right to live throughout the Land of Israel, just as the British have the right to live in London."