Moreover, the Human Race was already weaker compared to the Outer Realm Demigods. Once an internal conflict erupts again, it would mean the loss of their last hope.
This situation really made the elders immensely troubled.
And what complicates matters further is that, although Fang Ze appears to be feuding over territory, he has provided a façade and an almost perfect rationale.
Notice Fang Ze's wording. He uses "not open" for the space passage, rather than "close".
This is because the space passage was closed at the federal request to isolate the Eastern Administrative Region, not by Fang Ze seeking territorial disputes. Fang Ze only thinks the Eastern Administrative Region is too vulnerable now and maintains the status to protect it. This reasoning is entirely reasonable.