The US has effectively backed Israel's right to build Jewish settlements on the occupied West Bank by abandoning its four-decade position that they were "inconsistent with international law".

Key points: Mr Pompeo said the settlements were "not, per se, inconsistent with international law"

Mr Pompeo said the settlements were "not, per se, inconsistent with international law" He said his country's former stance against the Israeli communities in West Bank did not help the cause of peace

He said his country's former stance against the Israeli communities in West Bank did not help the cause of peace But the EU says its stance remains unchanged, with the union's foreign policy chief calling on Israel to end its settlement activity

The announcement by Secretary of State Mike Pompeo was a defeat for the Palestinians but a victory for Israeli Prime Minister Benjamin Netanyahu, who is struggling to remain in power after two inconclusive Israeli elections this year.

Mr Pompeo said US statements about the settlements on the West Bank — which Israel captured during a 1967 war — had been inconsistent, saying Democrat president Jimmy Carter in 1978 found they were not consistent with international law and Republican president Ronald Reagan in 1981 said he did not view them as inherently illegal.

"The establishment of Israeli civilian settlements is not, per se, inconsistent with international law," Mr Pompeo told reporters at the State Department.

"Calling the establishment of civilian settlements inconsistent with international law has not advanced the cause of peace.

"The hard truth is that there will never be a judicial resolution to the conflict, and arguments about who is right and who is wrong as a matter of international law will not bring peace."

Houses in the Israeli settlement of Maale Adumim, in the occupied West Bank. ( Reuters: Ammar Awad )

However, the European Union said it continued to believe Israeli settlement activity in occupied Palestinian territory was illegal under international law and eroded prospects for lasting peace.

"The EU calls on Israel to end all settlement activity, in line with its obligations as an occupying power," EU foreign policy chief Federica Mogherini said in a statement.

Mr Pompeo's stance drew criticism from a senior Palestinian figure even before his announcement.

"Another blow to international law, justice and peace," Hanan Ashrawi, a veteran Palestinian negotiator and member of the Palestine Liberation Organisation's Executive Committee, said on Twitter.

Palestinian President Mahmoud Abbas's spokesman, Nabil Abu Rdeneh, condemned the announcement.

"The US administration has lost its credibility to play any future role in the peace process," he said.

Trump's history of backing Israel

The announcement marked the third major instance in which US President Donald Trump's administration has sided with Israel and against stances taken by the Palestinians and Arab states even before unveiling its long-delayed Israeli-Palestinian peace plan.

In 2017, Mr Trump recognised Jerusalem as the capital of Israel and, in 2018, the US formally opened an embassy in the city.

US policy had previously been that the status of Jerusalem was to be decided by the parties to the conflict.

In March, Mr Trump recognised Israel's 1981 annexation of the Golan Heights in a boost for Mr Netanyahu that prompted a sharp response from Syria, which once held the strategic land.

Mr Netanyahu named a village in Golan Heights after Mr Trump as a gesture of appreciation.

The settlement was named Trump Heights in honour of the US President. ( Reuters: Ammar Awad )

Mr Trump's move might have been designed to help Netanyahu as he struggles to stay in power.

Israeli politics is deadlocked after two inconclusive elections this year.

Former military chief Benny Gantz's centrist Blue and White party emerged neck and neck with Mr Netanyahu following a September vote, and both leaders have struggled to put together a ruling coalition.

Wires