Israeli Prime Minister Benjamin Netanyahu’s decision to build a new settlement in an area disputed by the Palestinians provoked harsh condemnation from the United States, including a rare hint that military support for Israel could be imperiled by such actions.

“Proceeding with this new settlement is another step towards cementing a one-state reality of perpetual occupation that is fundamentally inconsistent with Israel’s future as a Jewish and democratic state,” State Department spokesman Mark Toner said in a Wednesday statement.