The European Union has summoned the Israeli ambassador to express concerns over settlement expansion plans.
The move follows similar action by many Western nations, including Britain and France.
The diplomatic pressure comes as Israel announced that it was withholding the transfer of tax revenue to the Palestinian Authority.
Al Jazeera's Nicole Johnston reports from Ramallah on the fraught economic relations between the two sides, and what the occupation means for businesses in the West Bank.
Source: Al Jazeera