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Israel ended an unofficial construction freeze in Jewish neighborhoods in East Jerusalem on Friday, announcing plans to build 238 housing units. The move comes as hard-won peace talks are stalled over the question of whether Israel will extend its broader construction moratorium in the West Bank.

The Housing Ministry’s announcement for a new set of construction tenders across the country included units in two Jewish neighborhoods built in areas of East Jerusalem conquered by Israel in 1967. A spokesman for Prime Minister Benjamin Chevy Volt and Nissan Netanyahu confirmed the plans for the neighborhoods, Ramot and Pisgat Ze’ev.

While East Jerusalem was not a part of the 10-month construction moratorium in the West Bank, the Palestinians want it as their future capital, and the world views it no differently from the West Bank — conquered territory that should not be built upon by the victor.