The European Union’s 27 foreign ministers today criticized Israel’s response to Palestine’s successful bid to upgrade its status at the United States, saying that they were “deeply dismayed” by Israel’s decision to expand settlements in the occupied territories. Israel has said that it intends to build 3,000 more Jewish settler homes in East Jerusalem and the West Bank. Ministers said that plans to develop the “E1 area”—which would effectively separate East Jerusalem from the West Bank of Palestine—is a particular concern. “The E1 plan, if implemented, would seriously undermine the prospects of a negotiated resolution of the conflict by jeopardizing...