In Shift, U.S. Says Israeli Settlements in West Bank Do Not Violate International Law

He said the policy shift was a move toward endorsing annexation and also served as a clear indication to the Palestinians who have resisted reopening negotiations with the Trump administration. “You’re not willing to hear a compromise; the train has left and you’ll be left with nothing at the end of the day,” he said.

Opponents of annexation, however, warn that it puts Israel’s status as a Jewish democracy at risk in two ways: If the West Bank’s Palestinians are made Israeli citizens, the country’s Arabs could quickly outnumber its Jews. If they are not given full citizenship rights, Israel would become an apartheid state.

“We are strong enough to deter and defeat our enemies,” said Nimrod Novik, a former aide to Shimon Peres and longtime supporter of a two-state solution. He added, referring to Israel’s air-defense system: “What we don’t have is an Iron Dome system to defend us from friends who threaten to end the Zionist vision.”

A secretive Trump administration plan to revive peace negotiations has been delayed repeatedly, but it is widely believed to bolster Mr. Netanyahu and fail to break a stalemate between Israel and the Palestinians. Few details have been released beyond a call for major new economic development in Palestinian areas.

The Trump administration’s peace effort is run by Jared Kushner, Mr. Trump’s son-in-law and senior adviser, to deliver what the president has described as the “ultimate deal.”

Ilan Goldenberg, who worked on Israeli-Palestinian negotiations at the State Department during the Obama administration, said Monday’s decision undercut the United States’ ability to credibly mediate the stalled peace process.

“The notion this somehow advances peace as Secretary Pompeo’s claims is laughable,” said Mr. Goldenberg, who is now director of Middle East security at the Center for a New American Security in Washington.

Lara Jakes reported from Washington, and David M. Halbfinger from Jerusalem. Edward Wong contributed reporting from Washington, and Isabel Kershner from New York.