Israel's settlements in the occupied territories have, for over forty years, been an obstacle to peace. They have drained Israel's economy, military, and democracy and eroded the country's ability to uphold the rule of law. Continuing settlement growth undermines peace prospects by making Palestinians doubt Israeli motives and commitment, and by complicating the territorial compromises that will be necessary in final-status talks. As recognized in Phase I of the US-backed Roadmap and the earlier Mitchell Report, settlement construction and productive Israeli-Palestinian peace negotiations are irreconcilable. Settlement construction must be frozen.

A majority of Israelis recognize this reality and oppose settlement expansion, yet their views have been outweighed by a small, vocal pro-settlement minority. American leaders can make a positive difference by adopting a consistent and forceful opposition to new construction in the settlements, bringing stronger diplomatic tools to bear in support of the Israeli majority opposing settlement growth. The U.S. should work with Israeli leaders to develop the financial, political and security resources needed to implement the Israeli consensus on ending settlement growth as a step towards stable peace.