'Forever capital of the Jewish people': US signs agreement to build permanent embassy in Jerusalem

US Ambassador Mike Huckabee said Washington "recognises Jerusalem as the eternal, indigenous, and forever capital of the Jewish people".

"I would say God made that decision 3,800 years ago, and we finally got around to acknowledging what had been determined long before the United States of America came along."

The agreement follows President Donald Trump's decision during his first term to recognise Jerusalem as Israel's capital in December 2017 and relocate the US embassy from Tel Aviv.

The US went ahead with the plan even though Palestinians continue to seek East Jerusalem as the capital of a future Palestinian state. Because of these competing claims, most countries have kept their embassies in Tel Aviv, maintaining that Jerusalem's final status should be settled through peace negotiations in line with international law and relevant United Nations resolutions.