US, Israel sign agreement to build permanent American embassy in Jerusalem

The United States and Israel have signed an agreement to construct a permanent American embassy compound in Jerusalem. The project, located at the Allenby compound, formalizes the US recognition of Jerusalem as Israel's capital.
Why it matters
This development solidifies a controversial shift in US foreign policy that has historically been a major point of contention in the Israeli-Palestinian conflict.
US ambassador to Israel Mike Huckabee and Israel’s Foreign Minister Gideon Saar during the signing ceremony of the agreement to build a new US embassy compound in Jerusalem, on July 1, 2026. — Photo via X/@USAmbIsrael Listen to article 1x 1.2x 1.5x comments Join our Whatsapp Channel Add Dawn as a trusted source The United States on Wednesday signed an agreement to build a new embassy compound in Jerusalem, in a move that Israel said reflected the “unbreakable alliance” between the countries.
The framing emphasizes the 'unbreakable alliance' and uses language like 'eternal, indigenous, and forever capital,' reflecting the perspective of the current US ambassador.
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