European Union powers led condemnation by U.N. Security Council members Tuesday of Israel's increased settlements in the occupied territories and growing attacks by settlers on Palestinians.

Britain, France, Germany and Portugal said in a joint statement after a council meeting on the Middle East conflict that they were "dismayed by these wholly negative developments" and the threat they pose to the peace process.

Israel on Sunday freed 550 Palestinian prisoners, completing the second phase of the deal which saw Israeli soldier Gilad Shalit freed in October, Palestinians said.

Officials in the West Bank city of Ramallah said that the main contingent of freed prisoners entered the city aboard a fleet of buses at around 10:00 pm (2000 GMT), where thousands of well-wishers awaited them at the Palestinian presidential headquarters.

Israel's housing and construction ministry said on Sunday it was to publish tenders for the construction of more than 1,000 housing units in east Jerusalem and the West Bank.

According to the ministry's website, the tenders are for 500 new units in the east Jerusalem neighborhood of Har Homa, and more than 500 in two West Bank settlements -- 348 in Beitar Ilit near Bethlehem, and 180 in Givat Ze'ev northwest of Jerusalem.

Israel was on Sunday preparing to release 550 Palestinian prisoners who will be freed after nightfall to complete a swap deal which brought about the release of captive soldier Gilad Shalit.

The release operation was expected to take place late in the evening, when the prisoners would be bussed to drop-off points near the West Bank city of Ramallah and along the Gaza border.

Former Prime Minister Saad Hariri stressed on Saturday on the importance of confiscating the “illegal arms,” noting that the Syrian people are getting closer to their “freedom.”

“Weapons should be only with the security forces and the army,” Hariri said in English, answering a question from a Twitter user.

Israeli troops shot dead a Palestinian in the Gaza Strip overnight after firing in the direction of an explosion near the border, the army and medics said on Saturday.

Majed al-Nabahin, 35, was killed near the al-Bureij refugee camp, hospital sources said.

Iceland formally recognized the Palestinian state at a ceremony in Reykjavik, becoming one of the first Western European countries to do so

"This is the day I formally submit to you the declaration of Palestine independence in accordance with the will of the Icelandic parliament," Icelandic Foreign Minister Oessur Skarphedinsson said, addressing his Palestinian counterpart Riyad Maliki at a news conference.

Vandals tried to set light to a mosque in a West Bank village overnight, the local mayor told Agence France Presse on Thursday in what was the latest "price tag" vengeance attack.

"Carpets and chairs in the women's section were partly burnt and on the wall was Hebrew graffiti saying 'The war has started'," said Abdelkader Abdeljalil, mayor of Burqa village, which lies several kilometers (miles) east of Ramallah.

Members of the international peacemaking Quartet appeared to make little progress on Wednesday after separate talks with Israeli and Palestinian officials in a bid to kick-start stalled peace talks.

Envoys and Quartet representative Tony Blair "stressed the important objective of a direct exchange between the parties without delay or preconditions," a statement from the diplomatic grouping read.

Israel on Wednesday reopened a controversial wooden access ramp to Jerusalem's al-Aqsa mosque compound, just over 48 hours after it was closed on safety grounds in a move which had sparked Muslim anger.

"It was opened this morning," police spokesman Micky Rosenfeld told Agence France Presse. "It has been opened as normal for visitors, both Christian and Jewish."