Announcement reverses four decades of US policy and puts Trump administration at odds with the international community.
It is a dramatic shift in US policy and goes against the position taken by international organisations and most other countries.
The United States says it no longer views the illegal Israeli settlements in the occupied West Bank as “inconsistent with international law”.
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The Palestinians are furious and many observers say it makes Israeli-Palestinian peace even more elusive.
It was another u-turn on policy by US President Donald Trump in favour of Israel.
Trump recognised Jerusalem as Israel’s capital and moved the US embassy there. He also recognised Israel’s annexation of the Golan Heights from Syria.
What’s the reason for this latest controversial move?
Presenter: Imran Khan
Gideon Levy – Columnist at Haaretz News and author of The Punishment of Gaza
Richard Falk – Professor emeritus at Princeton University and former UN special rapporteur for occupied Palestinian territories
Nour Odeh – Political analyst and former spokesperson for the Palestinian Task Force on Public Diplomacy