Cairo - Egypt condemned a law passed by the Israeli Knesset to legalize the building of more settlements on Palestinian territories. In a statement, the Egyptian Foreign Ministry said the law undermines the two-state solution and violates international laws and relevant UN Security Council resolutions. The United Nations warned Israel on Tuesday that the new Settlements Law helps pave the way for the annexation of the West Bank. Meanwhile, Senior Palestinian officials have called for the international community to punish Israel over a contentious new law that seeks to retroactively legalise thousands of West Bank Jewish settlement homes built unlawfully on private Palestinian land. This unilateral step by Knesset badly affects the Middle East peace process and deprives the Palestinian people of having an independent state with al-Quds as its capital, the statement added. The Knesset on Monday night passed legislation legalizing some 4,000 settler homes, a move that was attacked by the Left as the first step toward de facto annexation, according to the JPost.