PM in Israel policy shift

Australia has decided to formally recognise west Jerusalem as Israel’s capital, but will not move its embassy until there is a peace settlement between Israel and Palestinians, Prime Minister Scott Morrison has announced.

He said Australia will recognise east Jerusalem as Palestine’s capital only after a settlement has been reached on a two-state solution.

The Australian Embassy will not be moved from Tel Aviv until such a time.

While the embassy move is delayed, Mr Morrison said the government will establish a defence and trade office in Jerusalem and will also start looking for an appropriate site for the embassy.