"Settlements in the occupied Palestinian territory are illegal under international law."

United Nations Secretary-General Ban Ki-moon considered on Friday as illegal the Israeli settlements in the Palestinian occupied territories, saying that Israel’s refusal to halt West Bank settlements seriously hampered peace talks with the Palestinians.

"Settlements in the occupied Palestinian territory are illegal under international law, contravene the Road Map obligations of Israel, undermine confidence, prejudge the outcome of the permanent status negotiations and hamper efforts at bringing the parties back to the negotiating table," he told a UN committee dealing with Palestinian issues on Friday.
"We cannot afford to lose any further time," he stressed.

Ban said the Palestinians have the right to an independent state, adding Israel “has a right to live in peace within secure borders,” and a way must be found for Jerusalem to emerge as the “capital of the two states with arrangements for the holy sites acceptable to all."
Earlier in the week, Arab nations submitted a draft resolution to the UN Security Council condemning Israeli settlements in the West Bank, but a vote on it is not expected any time soon because of a likely U.S. veto.

The draft says that Israeli settlements established in the Palestinian Territory occupied since 1967, including East Jerusalem, are illegal and constitute a major obstacle to the achievement of a just, lasting and comprehensive peace.
The secretary-general also called for a halt to "irresponsible rhetoric" that questions a two-state Israeli-Palestinian “solution” and incites hatred and violence.

Direct “peace talks” between Israelis and Palestinians, sponsored by the US collapsed last year after Israel refused to extend a 10-month freeze on West Bank settlement construction.