RAMALLAH, West Bank (AP) — Nearly two dozen European diplomats have urged the EU to intensify efforts to block Israeli settlement in and near Jerusalem, saying such construction on occupied lands is the "single biggest threat" to a Mideast peace deal, according to an internal report Wednesday.

The diplomats also said the EU must ensure that aid to Israel and preferential trade agreements don't inadvertently benefit settlements, according to the report obtained by The Associated Press.

They recommended that the EU "prevent, discourage and raise awareness" of direct investments by European companies in settlements, but did not elaborate.