In response to the PA seeking, and getting, non-member state status granted by the UN General Assembly, Israel has announced plans to expand settlements around Jerusalem:
Israel is moving forward with development of Jewish settlements in a contentious area east of Jerusalem, defying the United States by advancing a project that has long been condemned by Washington as effectively dooming any prospect of a two-state solution to the Israeli-Palestinian conflict.
A day after the United Nations General Assembly voted overwhelmingly to upgrade the status of the Palestinians, a senior Israeli official said the government would pursue “preliminary zoning and planning preparations” for a development that would separate the West Bank cities of Ramallah and Bethlehem from Jerusalem. If such a project were to go beyond blueprints, it could prevent the creation of a viable, contiguous Palestinian state.
The development, in an open, mostly empty area known as E1, would connect the large settlement town of Maale Adumim to Jerusalem. Israeli officials also authorized construction of 3,000 housing units in parts of East Jerusalem and the West Bank.
The timing of the twin actions seemed aimed at punishing the Palestinians for their United Nations bid, and appeared to show that hard-liners in the government had prevailed after days of debate over how to respond. That represented a surprising turnaround, after a growing sense that Israeli leaders had acceded to pressure from Washington not to react quickly or harshly.
A UN General Assembly resolution, and $12.75, will get you a Starbucks latte, so the value to the Palestinian Authority is primarily as an tool for its internal struggle with Hamas, and as way to position itself in a slightly more favorable footing in negotiations with Israel.
As to the Israeli plans, it’s value to Netanyahu and the Likud government is as a tool for political advantage against Kadima or Labour in elections, and as as way to position itself in a slightly more favorable footing in negotiations with the PA.
On the plus side, neither action involves either side lobbing rockets at each other.