The Albanese Government has reversed a previous decision to recognise West Jerusalem as the capital of Israel, and Australia’s embassy will remain in Tel Aviv. In 2018, then-PM Scott Morrison followed former US President Donald Trump’s decision to overturn established policy. It’s controversial because Jerusalem’s status remains a key sticking point in the ongoing conflict between Israel and Palestine – Israel regards the entire city as its capital, while Palestine wants occupied East Jerusalem as the capital of a future state they hope to establish. Last night, Israel’s PM Yair Lapid said he was “deeply disappointed” by the “hasty” move and summoned Australia’s ambassador to lodge a complaint. Foreign Minister Penny Wong says the matter should be resolved as part of peace negotiations in which Israel and a Palestinian state coexist.