JERUSALEM -- Israel gave the final go-ahead Thursday to build nearly 1,500 homes in Jewish settlements in east Jerusalem and the West Bank, saying the construction was a response to the formation of the Palestinian unity government backed by the Islamic militant group Hamas.

The move triggered international criticism and deepened a rift that has arisen between Israel and its Western allies since Palestinian President Mahmoud Abbas swore in the unity government Monday.

Israel has asked the world to shun the government because it is backed by Hamas, which is considered a terrorist group by Israel, the European Union and the United States.

But Abbas, who is backed by the West, said Hamas plays no formal role in the government. His new Cabinet consists of technocrats who have accepted international demands to renounce violence and accept Israel's right to exist. None of the men have any affiliation with Hamas.

Israeli officials said any government that is backed by Hamas is unacceptable as long as the group remains sworn to Israel's destruction. But for now, both the U.S. and EU have said they will give the new government a chance -- and will continue funneling hundreds of millions of dollars in aid to Abbas.

Israel's housing minister, Uri Ariel, said Thursday that tenders had been issued to build about 900 homes in the West Bank and about 560 more in east Jerusalem, territories captured in the 1967 Mideast war and which the Palestinians seek as parts of a future state.

The international community considers such Israeli settlement construction illegal or illegitimate, and continued construction was a recurring sticking point in U.S.-backed peace talks that collapsed in April.

In a statement, Ariel said the construction was a "fitting Zionist response to the formation of a Palestinian terror government.

He said the plans were "just the beginning," and an Israeli official said an additional 1,800 housing units were expected to be approved next week.

The official, speaking on condition of anonymity because he was not authorized to talk to the media, said the units were at various stages of the planning process, but about 700 would receive final approvals for construction.

Another Israeli official, also speaking on condition of anonymity, said Israeli Prime Minister Benjamin Netanyahu had authorized Ariel's decision. He claimed all construction would take place in areas that Israel expects to keep in any "conceivable" peace deal.

More than 560,000 Israelis live in territories captured in the 1967 war, and the Palestinians say that continued growth of settlements on the lands they claim makes it increasingly difficult for them to achieve independence.

Chief Palestinian peace negotiator Saeb Erekat said Thursday's settlement announcement is "a clear sign that Israel is moving toward a major escalation." He said the Palestinians were formulating a response to the move.

Israel pressed forward with construction plans for thousands of settlement homes during the peace talks, drawing Palestinian accusations that Israel was negotiating in bad faith. Israel said it never committed to halting construction during the talks.

Thursday's move was the first settlement activity to be announced since the talks collapsed. U.S. Ambassador to Israel Dan Shapiro told Army Radio that the U.S. opposes the planned settlement construction. State Department deputy spokesman Marie Harf called the new housing "unhelpful" and "illegitimate."

The EU said in a statement it was "deeply disappointed" by the housing approvals, saying they were "unhelpful to peace efforts." The EU urged Israel to reverse the decision. U.N. Secretary-General Ban Ki-moon echoed that call.

Justice Minister Tzipi Livni, who was Israel's chief peace negotiator, told Army Radio the announcement was a "political mistake ... that will only distance us from the ability to recruit the world against Hamas."

The collapse of peace talks helped push Abbas to reconcile with Hamas after a seven-year rift.

Hamas seized the Gaza Strip from Abbas' forces in 2007, leaving the Palestinians with two rival governments, the Hamas regime in Gaza and Abbas' Palestinian Authority in autonomous areas of the West Bank.

After concluding he could not reach a peace agreement with Netanyahu, Abbas decided the time was ripe to repair ties with Hamas. The rift had been considered a major impediment to establishing a Palestinian state.

Information for this article was contributed by Lara Jakes, Cara Anna and Juergen Baetz of The Associated Press.

A Section on 06/06/2014