Israeli settlers who have long pushed to have their illegal outposts legitimised are celebrating the decision of the United States to no longer treat occupied West Bank settlements as breaching international law.
The decision has angered the Palestinians. They say it would embolden a section of the Israeli society that has attacked Palestinian livelihoods in a bid to grow their influence in the occupied territory, be it by burning olive groves, attacking farmers or the Israeli military trying to sequester more Palestinian land for new settlement construction.
The majority of the international community considers the settlements to be illegal under law. The European Union was quick to state that it still considered them to be illegal under international law.
The settlers, who overwhelmingly form part of Israeli Prime Minister Benjamin Netanyahu's right-wing constituency, said the US policy change paved the way for annexation of the settlements, a move that would put an end to any hopes of a contiguous Palestinian state.
In the occupied West Bank, wine maker Yaakov Berg said he celebrated the decision by opening a bottle.
"It is an historic day," he said. “The US statement is important for the future of this region.”
Other settlers rejoiced about the American U-turn. Oded Revivi, head of the Yesha Council, an umbrella group for the settlers, said the time had come for the settlers and the government to capitalise on the American decision and annex the territory.
"Now is the time to take action utilizing our political and legal platforms to apply Israeli law," he said.
Israel has now boosted its settler population in the occupied West Bank and occupied East Jerusalem, territories it captured in the 1967 Arab-Israeli War, to more than 600,000 Israelis.
Avi Bell, senior fellow at the right-wing Kohelet Policy Forum in Israel, said the announcement would strengthen Israel in defending settlement construction.
"The illegality of settlements has always been stated as a fact based upon an international consensus. The breaking of that consensus is important," he said.
Israeli right-wing leaders also 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 the West Bank.
On Tuesday, Mr Netanyahu said the US decision "gives us a once-in-a-lifetime opportunity" to annex the Jordan Valley, an area in the West Bank seen as the breadbasket of a Palestinian state. 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.
Mr Netanyahu has previously vowed to annex the area, a move that would swallow up most of the West Bank territory sought by the Palestinians, leaving them with little more than isolated enclaves. Israel sees the territory as a security asset.
The Palestinians said the move undercuts any chances of a broader peace deal.
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 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.
