Islamic Jihad warns Israel over settlements plan

"The aggressive polices of the occupation require confrontation," the group said, claiming that it would respond to Israeli policies of expanding settlements and displacing Palestinians.

The Islamist group also condemned the Israeli demolition of a mosque on Tuesday in the south Hebron Hills.

Israel announced plans to build thousands of new settler homes in East Jerusalem and the West Bank on Friday, a day after a UN vote upgraded Palestine's status to that of non-member observer state.

Israel also announced it would expedite the planning process in the so-called E-1 settlement zone east of Jerusalem, which effectively splits the Palestinian north and south West Bank.

The plans drew widespread international condemnations, with several countries summoning Israeli ambassadors in protest against the decision.