Balance of Power: Trump May Make Good on Jerusalem Promise

(Bloomberg) -- U.S. President Donald Trump appears to be seriously considering recognizing contested Jerusalem as Israel's capital, a step that risks enraging Arab opinion.

Trump may signal his intent today when he's due to decide whether to renew his signature on a waiver to keep the U.S. embassy in Tel Aviv, as he did six months ago. He could announce a decision on recognizing Jerusalem as early as Wednesday, Axios reported.

Israel captured the city's eastern sector — claimed by the Palestinians as the capital of a future state — in the 1967 Middle East war and in effect annexed it. The rest of the world doesn't recognize the de facto annexation, nor regard Jerusalem as Israel's capital.

While Trump's son-in-law, Jared Kushner, said yesterday he didn't want to preempt the president's decision, White House National Security Adviser H.R. McMaster said moving the embassy to the holy city would create “momentum” to broker peace in the Middle East.

Some regional players see potential peril in bringing the long-dormant issue back to center stage, with Palestinian and other Arab leaders warning that violence may erupt if Trump makes the move.

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--With assistance from Kathleen Hunter Brendan Scott and Gregory White

To contact the author of this story: Amy Teibel in Jerusalem at ateibel@bloomberg.net.

To contact the editor responsible for this story: Karl Maier at kmaier2@bloomberg.net, Caroline Alexander

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