Saturday night in Jerusalem -- less than 24 hours after the grisly deaths of a man, his wife and three children were discovered -- Prime Minister Binyamin Netanyahu and Defense Minister Ehud Barak told reporters the decision to resume building was in direct response to what they consider a terror attack by Palestinians, Haaretz reported.
The slayings of three children and their parents in the town of Itamar drew immediate anger from the Israeli government and an appeal to the United Nations Security Council to chastise the Palestinian Authority.
However, there were no known suspects in the case as of Sunday morning.
After the Saturday night Cabinet meeting, Barak told reporters the attack on the family was clearly political.
"Israel's security, its future and its borders will be designed and shaped by our decisions and not by murderous terrorism," he said.
Israel had halted construction in the West Bank for months amid peace negotiations, but will resume building in five towns, leaders said.