JERUSALEM — Prime Minister Benjamin Netanyahu on Wednesday canceled a plan that would have banned Palestinian laborers from riding on the same buses with Jewish settlers in the West Bank, just hours after it was announced – an embarrassing about-face that reflected the tensions enveloping Israel’s new government.

The inauspicious start for Netanyahu’s hard-line government illustrated the difficulties that loom as it tries to advance a pro-settler agenda in the face of rising global outrage and domestic criticism.

The reversal came as the European Union’s foreign policy chief, Federica Mogherini, was in town. The EU has taken a tough stance against settlements built on lands claimed by the Palestinians.

As the bus plan was unveiled, Israeli critics across the political spectrum derided it as racist, with one opposition politician comparing it to “apartheid.” Israeli President Reuven Rivlin, a member of Netanyahu’s Likud Party, called the plan “unthinkable” and said there had been “great damage” to Israel.

Netanyahu’s new coalition is dominated by settler sympathizers, and the busing plan, launched late Tuesday on a trial basis, had sought to separate settlers and Palestinians from traveling together through the West Bank.

The plan’s mastermind, Defense Minister Moshe Yaalon, said it was connected solely to security. The settlers had complained of safety concerns and alleged harassment of female riders by Arab passengers.

“Every normal country is allowed, and especially in our security situation, to inspect those who enter and exit,” Yaalon said, denying any racist intentions. “That is what this is about and nothing else.”

But after the public uproar, Netanyahu told Yaalon it was “unacceptable” and the two decided to freeze the plan, an official in the prime minister’s office said, speaking on condition of anonymity because he was discussing internal communications.

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