Israel has the legal right to act that way. The West Bank does not belong to any other country. It is doubtly or disputable included within the concept of occupation. However, the real question is political. The whole conflict has nothing to be with legality but with politics. Politically it is a very bad decision, especially in present times. Hopefully it won't prosper.
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Russia proposes March 1 ceasefire in Syria, Western official says (Reuters)
from the article: IDF order will enable mass deportation from West Bank