Settlements have been identified as a focus issue of PIEF.

Recognizing that it is an issue that potentially and virtually marks the dividing line between and continuing conflict, the World Council of Churches' Central Committee approved a statement in September 2009 describing the settlement policy of the state of Israel in the territories as an obstacle to the fulfilment of the promise for a viable Palestinian state and antithetical to the legitimate interests of the state of Israel.

PIEF has steadfastly opposed creation of new settlements and expansion of existing ones. Recent statements from the WCC attest to this opposition. A campaign is foreseen coupled with materials. The World Week for Peace in Palestine and Israel will also focus on settlements and the road blocks they present on the route to peace.