WASHINGTON – United States signed agreement to build permanent embassy complex in Jerusalem, cementing one of President Donald Trump’s most consequential Middle East policy decisions, in other words, its Washington’s recognition of the city as Israel’s capital is here to stay.
As Israeli leaders hailed agreement as another milestone in “unbreakable alliance” between Washington and Tel Aviv, the move is expected to reignite international debate over Jerusalem’s status—a core issue at the heart of the decades-long Israeli-Palestinian conflict. The new embassy will be constructed at Allenby compound in Jerusalem’s southern Talpiot neighborhood, replacing the temporary facilities that have housed US diplomatic operations since the embassy’s relocation from Tel Aviv in 2018.
The project shows latest chapter in dramatic policy shift initiated during Trump’s first administration. In December 2017, he became the first US president to formally recognize Jerusalem as Israel’s capital, overturning decades of American policy that left the city’s final status to be determined through Israeli-Palestinian peace negotiations.
🇮🇱🇺🇸⚔️🇵🇸Huckabee and Saar sign the agreement on establishment of permanent US Embassy in the occupied Palestine, Al-Quds (Jerusalem).
❗️It constitutes a violation of international law.
ResistanceTrench pic.twitter.com/whThvbw0nE
— dana (@dana916) July 1, 2026
Although embassy officially opened in Jerusalem in May 2018, diplomatic operations have continued from multiple locations. The permanent complex will bring those offices under one roof, improving security, operational efficiency and Washington’s long-term diplomatic footprint in Israel.
US Ambassador to Israel Mike Huckabee said the project demonstrates that the United States is backing its recognition of Jerusalem with lasting action rather than symbolism alone. “The United States not only recognizes Jerusalem as the eternal, indigenous, and forever capital of the Jewish people, but also that the United States says that we’re going to do something about it,” Huckabee said.
He said future embassy as the “mothership” of US diplomatic activity in Israel and added, “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.”
According to officials, the embassy will be built on land leased to the United States for 99 years at a symbolic cost of just one dollar, underscoring what both governments describe as the extraordinary closeness of bilateral ties.
Israeli Foreign Minister Gideon Saar said the agreement transforms Trump’s 2017 decision into a lasting reality. “President Trump’s historic decision in 2017 to move the embassy to Jerusalem set the record straight,” Saar said. “Today, with the agreement to begin building a permanent embassy complex, that decision becomes even deeper and more enduring.”
The timing of the agreement is importanty as it comes after months of close US-Israeli military cooperation during war against Iran and follows reports of tensions between Trump and Israeli Prime Minister Benjamin Netanyahu over how to end the conflict with Tehran. Despite those reported differences, the embassy deal highlights the enduring strategic partnership between Washington and Jerusalem.
The project is logical completion of Trump’s recognition of Jerusalem, arguing that a permanent embassy removes any doubt about Washington’s commitment to Israel and makes the policy increasingly difficult for future administrations to reverse. The decision, however, remains deeply controversial internationally because Jerusalem’s sovereignty is one of the most sensitive issues in the Middle East.
Palestinians seek East Jerusalem as the capital of a future independent state, and several Muslim countries stand with it while Israel considers the entire city its indivisible capital after capturing East Jerusalem during the 1967 Arab-Israeli War.
Most of countries continue to maintain embassies in Tel Aviv, arguing that Jerusalem’s final status should be resolved through negotiations in line with international law and United Nations resolutions.
The establishing a permanent embassy before a negotiated settlement risks undermining future peace efforts, while supporters contend that it simply reflects the political reality that Israel’s government has long been based in Jerusalem.
For the unversed, Allenby compound carries historical importance as it was built as British military barracks during the Mandate era, the site later came under Israeli control after the 1948 Arab-Israeli War. Some Palestinian families claim ownership of parts of the property and oppose the project, saying the land was expropriated and remains disputed.
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