G7 foreign ministers on Thursday condemned Israel's move to expand its settlements in the occupied West Bank, calling it "counterproductive to the cause of peace".
"We reaffirm our commitment to lasting and sustainable peace ... on the basis of the two-State solution," the statement said after a meeting on Thursday chaired by Italy's foreign minister Antonio Tajani on the sidelines of a Nato summit in Washington.
G7 foreign ministers also urged Israel to release all remaining tax revenues to the Palestinian Authority, saying the West Bank's economic stability was "critical for regional security".
The G7's statement follows censure by the United Nations and the European Union after Israel announced last month that it was going to legalise five outposts in the West Bank, establish three new settlements, and seize huge tracts of land where Palestinians hope to create an independent state.
The G7 major democracies include the United States, Britain, Canada, Japan, France, Germany and Italy.
