Portugal's foreign minister warned Monday that Israel's expanding illegal settlements and mounting economic pressure in the occupied West Bank and East Jerusalem were eroding prospects for the establishment of a viable Palestinian state.

Foreign Minister Paulo ​Rangel said ⁠Israel's E1 settlement plan was "extremely pernicious" because it would divide the West Bank, isolate East Jerusalem and was incompatible with a two-state solution.

Israel's withholding of Palestinian tax revenues amounted to a "brutal strangulation" of the Palestinian Authority's finances, ⁠preventing ⁠the economy from functioning, he said after meeting Palestinian Foreign Minister Varsen Aghabekian Shahin in Lisbon.

Rangel also cited the closure of Christian schools in East Jerusalem as evidence of worsening ⁠conditions there.

Portugal recognized the State of Palestine a year ago.

Rangel ​said the two-state solution was the ​only way to guarantee peaceful coexistence between Israelis and Palestinians.

⁠Israel ‌said ‌last week it was ⁠closing Britain's consulate in ‌East Jerusalem in response to ​plans by the ⁠U.K., France and Canada to ⁠block imports from illegal Israeli settlements ⁠in ​the West Bank.