Finance Minister Bezalel Smotrich announced Tuesday that Israel has ended a key provision of the Chevron Agreement, after planning and construction powers for Chevron’s Jewish community and Maarat Hamachpela were transferred away from the Palestinian-run Chevron Municipality.

The Chevron Municipality is the local Palestinian authority that governs the Arab-majority city. Under the arrangement announced by Smotrich, it will no longer have authority over planning issues tied to the Jewish community in Chevron and holy sites.

“Yesterday we canceled the Chevron Agreements,” Smotrich said. “For many years, one of the most absurd clauses of Oslo remained in place, under which authorities relating to the Jewish community in Chevron and the holy sites were dependent on the terrorist municipality of Chevron. Yesterday we put an end to that.”

The move followed a security cabinet decision approved several months ago, and was completed after the Supreme Planning Council approved the necessary steps Monday night. Israeli authorities will now handle planning and building decisions in those areas.

The 1997 Chevron Agreement divided the city into Palestinian and Israeli-controlled areas. Smotrich’s announcement does not mean the entire agreement was formally canceled, but targets one planning arrangement that remained in place under the post-Oslo framework.

“This is much more than a planning measure. It is a historic correction,” Smotrich said. “We are continuing the revolution of regulating settlement, strengthening governance and deepening Israeli sovereignty in Judea and Samaria.”