 "US President Donald Trump shakes hands with Israel's Prime Minister Benjamin Netanyahu at the end of a news conference at Mar-a-Lago, December 29, 2025, in Palm Beach, Florida. AP")
The Government of Israel on Tuesday approved a proposal to allocate land in Jerusalem for the construction of a permanent United States Embassy, marking a significant step in strengthening bilateral ties.
The decision was backed by Prime Minister Benjamin Netanyahu , Foreign Minister Gideon Sa’ar, and Construction and Housing Minister Haim Katz.
Site identified at Allenby Complex
Under the proposal, land at the Allenby Complex in Jerusalem has been designated for the new embassy building, which will serve as the permanent diplomatic headquarters of the United States in Israel.
The move is seen as the next step in formalising the US diplomatic presence in the city, years after the embassy was relocated.
‘Historic decision’ rooted in Trump-era move
Prime Minister Netanyahu, along with Ministers Sa’ar and Katz, described the approval as a “significant decision” that completes a major diplomatic process initiated during the tenure of US President Donald Trump.
They highlighted Trump’s earlier decision to recognise Jerusalem as Israel’s capital and shift the US Embassy there as a turning point in bilateral relations.
According to the Israeli leadership, the construction of a permanent embassy building represents a “tangible, central, and long-term expression” of Washington’s commitment to Jerusalem as Israel’s capital.
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View AllThey added that the project underscores the resilience and depth of the relationship between the two countries.
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Move gains significance amid Iran tensions
The timing of the decision is also being viewed through the lens of ongoing regional tensions, particularly the conflict involving Iran.
Israeli leaders noted that as Israel and the United States stand “shoulder to shoulder” against what they described as the Iranian regime, the embassy project carries added strategic and symbolic weight.
The Prime Minister and ministers expressed gratitude to US Ambassador to Israel Mike Huckabee for his close cooperation in advancing the proposal.