JERUSALEM, July 22 (Xinhua) -- Israel began to demolish a number of Palestinian houses it considers unauthorized on the outskirts of Jerusalem early Monday, local media reported.

The Israel Defense Forces went to Sur Baher, a Palestinian neighborhood on the southeastern outskirts of East Jerusalem, overnight to demolish dozens of buildings near a security barrier, the Times of Israel reported.

Sur Baher was captured and has been occupied by Israel during the 1967 Six-Day War.

The Palestine Liberation Organization on Sunday warned against Israel's threat to demolish Palestinian buildings in the area, calling the move "a war crime under international laws" and urging an international investigation into the issue.

Jamie McGoldrick, the United Nations (UN) humanitarian coordinator, and other UN officials called on the Israeli authorities last week to halt the demolition plans. They said 17 Palestinians faced displacement from the plans to level 10 buildings, including dozens of apartments.

"Seventeen Palestinians, including nine Palestine refugees, face the risk of displacement," the UN said in a statement.

Another 350 people waiting to move into the buildings that are still under construction face massive property loss due to the Israeli authorities' intention to demolish 10 buildings, including around 70 apartments, the UN officials said.

"The continuation of this policy undermines the viability of the two-state solution and the prospect for a lasting peace," the European Union said in a statement.

However, the Israeli Supreme Court's three-judge panel ruled unanimously in favor of demolition, saying the construction close to the barrier could provide cover for attackers.