Becoming the third country to do so after the U.S. and Guatemala, Australia has recognized Jerusalem as Israel’s capital. These recognitions have angered Palestinians and have been highly contentious in Muslim countries around the world, as they will weigh in on one of the most divisive questions in Israeli-Palistian peace debates: the status of Jerusalem. Australia’s move was unique from the previous recognitions, however, as it only named West Jerusalem and stated that the country would not move its embassy there until the completion of a peace agreement along the two-state idea. By naming only West Jerusalem, it angers many Israelis who insist that the entire city, with most of the holy sights in the Eastern portion, is the property of the Jewish people and country. Palestinians are pleased by the tacit recognition of their claim to East Jerusalem, although are against the precedent the embassy moves are creating. The move has impacted Australian politics and foreign relations, with Indonesia and Malaysia delaying and threatening ongoing free trade negations.
Source: Australia recognizes west Jerusalem as Israel’s capital