The list now contains 158 companies — the vast majority Israeli, with others from from the U.S., Canada, China, Britain, France, Germany, Spain, Portugal, the Netherlands and Luxembourg.

Many have been unable to leave the territory since the Allenby Bridge crossing was shut indefinitely on Wednesday.

As several of Israel's Western allies recognise a Palestinian state, Israel has accelerated plans for settlements that it hopes will make the two-state solution impossible.

Israel’s sudden decision to indefinitely close the sole land crossing giving over 3 million Palestinians in the occupied West Bank access to international travel, has intensified fears of more restrictions amid Israel’s threats of retaliation against Western recognition of a Palestinian state.

After more countries recognized a Palestinian state this week, President Trump said on Thursday that he would not permit Israel to take over the territory.

The president presented a 21-point plan for peace in the Middle East to regional leaders gathered in New York for the United Nations General Assembly on Tuesday.

President Trump said Thursday he will not let Israel annex the West Bank, an idea that has circulated among some hardliners in Benjamin Netanyahu's government.