"Palestinians and most of the international community consider Jewish settlements to be obstacles to peace because they are built on territory captured by Israel in the 1967 Mideast war that Palestinians want for a future state"
Fudge
*
"the international community"  
This is the community that stood by and watched the holocaust start up.  Not much of a recommendation.
*
"territory captured by Israel in the 1967 war"
The Arabs wanted this land to be part a pan Arab state at the dissolution of the Ottoman empire around 1918.
This was denied in the formal agreements made at that time.  That land was not included in the new Arab/Palestinian state -  Jordan.
In the 1948 wars Jordan invaded and took the land by force.
In 1967 Israel took the land back and returned it to its legal status, under their control.
The settlements are in principle consistent with the original agreements,  since they included the idea of an expanding Jewish population due to immigration.