(Reuters) — The United States sees Israel’s announcement on Sunday of a land appropriation for possible settlement construction in the occupied West Bank as “counterproductive” to peace efforts and urges the Israeli government to reverse the decision, a State Department official said.

Israel laid claim to nearly a thousand acres (400 hectares) in the Etzion settlement bloc near Bethlehem, a move which an anti-settlement group termed the biggest appropriation in 30 years and a Palestinian official said would cause only more friction after the Gaza war.

“We have long made clear our opposition to continued settlement activity,” the U.S. official said. “This announcement, like every other settlement announcement Israel makes, planning step they approve and construction tender they issue is counterproductive to Israel’s stated goal of a negotiated two-state solution with the Palestinians.”

“We urge the government of Israel to reverse this decision,” the official said in Washington.