They are built in disputed territory, The West bank has never been a palestinian state. Despite U.N. condemnation, there are no sanctions against Israel. That means, NO PROBLEM. However, the Secretary General of the U N might be right. Settlements hardly contribute to peace. That is another story.
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IDF fires tank shells toward Gaza in response to mortar fire (Haaretz)
from the article: UN chief Ban in Ramallah: Settlements undermining peace