White House discussing US Israel embassy move
The White House says Donald Trump's administration is "beginning" to discuss moving the US embassy in Israel to Jerusalem.
It would fulfil a pledge Mr Trump made on the campaign trail to transfer the US' diplomatic mission from Tel Aviv where it is at present.
White House spokesman Sean Spicer said in a statement: "We are at the very beginning stages of even discussing this subject."
It comes as Israel's Security Cabinet released a statement saying the Prime Minister Benjamin Netanyahu has removed restrictions on settlement building.
Sky's Diplomatic Editor Dominic Waghorn said the move is potentially explosive.
He said: "In the 1967 war, Jerusalem was annexed in a move regarded as against international law and a UN resolution has decided Israel's position that it is the eternal capital of Israel is against international law because it has no resolved status, in negotiation.
"If America puts its embassy there it effectively recognises Jerusalem as the capital of Israel.
"That is denying Palestinians a chance to have a capital there.
"They also claim Jerusalem as their capital, and it is a most important shrine in Islam, so it has a lot of importance for Muslims as well as Israel.
"It is combustible material geopolitically ... and one reason why George Bush and Bill Clinton said in their election campaigns that they would move the embassy to Jerusalem but never actually acted on that in office."
Mr Trump spoke to Israeli Prime Minister Benjamin Netanyahu by phone on Sunday - their first call since the President took office. He described their chat as "very nice".
Mr Netanyahu afterwards said he had been invited to a meeting with Mr Trump in Washington in February.
The pair also discussed the "threats" posed by Iran, the White House said afterwards, and Mr Trump "emphasized" to the Israeli PM that Israel-Palestinian peace can only "be negotiated directly" between the two parties.
The US Congress passed a bill in 1995 calling Jerusalem Israel's capital and stating it should not be divided.
No president has so far actually acted on the law to move the embassy, however.
Shortly after it was revealed Israel had approved building permits for hundreds of new homes in three East Jerusalem settlements - contrary to a recent UN resolution - a statement was released saying restrictions on settlement building had been lifted.
Mr Netanyahu said: "There is no longer a need to coordinate construction in the Jewish neighbourhoods in East Jerusalem. We can build where we want and as much as we want.
"My vision is to enact sovereignty over all the settlements," he said.
