Are the Palestinians Allowed to "Retaliate"?

According to Ha'aretz:

A secret, two year investigation by the defense establishment shows that there has been rampant illegal construction in dozens of settlements and in many cases involving privately owned Palestinian properties. [ . . . ]

In conversations with Haaretz, the sources maintained that the report is not being made public in order to avoid a crisis with the U.S. government. [ . . . ]

Three years ago, in talks with the Americans, Israel promised that all new construction in the older settlements would take place near existing neighborhoods. The idea was that construction would be limited to meeting the needs of the settlements' natural growth, and bringing to an end the out-of-control expansion over territory. [ . . . ]

In many settlements, including Ofra and Mevo Horon, homes have been constructed on private Palestinian land.