JERUSALEM: Argentine President Javier Milei said Wednesday his country would move its embassy in Israel to Jerusalem, the status of which is one of the most delicate issues in the Israel-Palestinian conflict.
“I am proud to announce before you that in 2026 we will make effective the move of our embassy to the city of west Jerusalem,” Milei said in a speech in the Israeli parliament during an official state visit.
Argentina’s embassy is currently located near the coastal city of Tel Aviv.
Several countries, including the United States, Paraguay, Guatemala and Kosovo, have moved their embassies to Jerusalem, breaking with international consensus.
Israel has occupied east Jerusalem since 1967, later annexing it in a move not recognized by the international community.
Israel treats the city as its capital, while Palestinians want east Jerusalem to become the capital of a future state.
Most foreign embassies to Israel are located in the coastal hub city of Tel Aviv in order to avoid interfering with negotiations between Israelis and Palestinians.
In 2017, during his first term as US president, Donald Trump unilaterally recognized Jerusalem as Israel’s capital, sparking Palestinian anger and the international community’s disapproval.
The United States transferred its embassy to Jerusalem in May 2018.

JERUSALEM: An Israeli move to cut off cooperation with Palestinian banks could halt the supply of essential goods such as food and fuel to the Palestinian territories, the Palestinian Monetary Authority said on Wednesday.
Israeli Finance Minister Bezalel Smotrich ordered the cancelation of a waiver on cooperation between Israeli and Palestinian banks on Tuesday.
This move risks the Palestinian banking system, trade, and overall economy. Israeli banks Hapoalim and Israel Discount Bank work with Palestinian banks.
Some 53 billion shekels ($15.2 billion) were exchanged at Palestinian banks in 2023, official data show.

Canceling the waiver would require approval by Israel’s security Cabinet. No date for a vote has been set, and it was not clear whether it would pass.
The PMA said it was following developments and warned that such disruption posed a serious threat to Palestinian access to basic goods and services.
It noted it has ongoing coordination with the political leadership and international community to safeguard correspondent banking relationships.
“These efforts are vital to ensuring the continuity of commercial transactions and the payment of essential imports and services, including food, electricity, water, and fuel,” the PMA said.
Smotrich said his decision came against the “delegitimization campaign” by the Palestinian Authority against Israel globally.
The waiver had allowed Israeli banks to process shekel payments for services and salaries tied to the Palestinian Authority, without the risk of being charged with money laundering and funding extremism.
Without it, Palestinian banks would be cut off from the Israeli financial system.
The PMA said depositors’ funds within the Palestinian banking sector are secure and that the banking system remains integrated with the global financial network through a broad range of correspondent banks and continues to provide services to individuals and businesses domestically and internationally.

Smotrich, under US pressure, had in late 2024 signed a waiver to extend cooperation between Israeli and Palestinian banks through November 2025.
In the past, Smotrich sought to end the waiver but ultimately signed it due to pressure from the US and Prime Minister Benjamin Netanyahu.
His latest decision came hours after the UK and four other nations imposed sanctions on him and another far-right minister, accusing them of inciting violence in the West Bank.
The sanctions included a freeze on assets and travel bans.
Israel’s Foreign Minister Gideon Saar said the action by the five countries was “outrageous.”