Israel on Sunday confiscated nearly 1,000 acres of privately owned Palestinian land near an Israeli settlement south of Bethlehem in the West Bank — a move described by Israeli rights group Peace Now as “unprecedented in its scope since the 1980s."

Settlements built on Palestinian land occupied by Israel, including East Jerusalem, are deemed illegal by the United Nations. Israel’s refusal to halt their construction and expansion has at times arrested the peace process and increased resentment and distrust among Palestinians.

In a statement published on its website, Peace Now condemned the latest land confiscation and said it further damaged the chance of achieving a lasting peace between Israelis and Palestinians based on a two-state solution.

The group also said the move ran contrary to the “new diplomatic horizon” that Israeli Prime Minister Benjamin Netanyahu spoke of earlier this month, even as Israel and Hamas exchanged blows in a deadly battle that devastated the Gaza Strip.

“Peace Now views this declaration as proof that Prime Minister Netanyahu does not aspire for a new ‘Diplomatic Horizon’ but rather, he continues to put obstacles to the two state vision and promote a one state solution,” the group said.

Later on Sunday, a U.S. State Department official characterized the land confiscation as "counterproductive” and urged Israel to “reverse” its decision.

British Foreign Secretary Philip Hammond echoed that call on Monday, saying the move had the potential to reignite violence between the two parties.

"This is a particularly ill-judged decision that comes at a time when the priority must be to build on the cease-fire in Gaza. It will do serious damage to Israel's standing in the international community," Hammond said.