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U.S. and Israel Sign 99-Year Lease for Allenby Site as Permanent U.S. Embassy in Jerusalem

The agreement formalizes Washington's long-term recognition of Jerusalem as Israel's capital while construction plans remain unannounced and legal objections continue.

Overview

  • Israeli Foreign Minister Gideon Saar and U.S. Ambassador Mike Huckabee signed the land-allocation deal at the Foreign Ministry, granting Washington a 99-year lease on the Allenby Complex for a symbolic $1.
  • Officials said the site will become a single, consolidated U.S. embassy campus described as a diplomatic 'mothership,' but they gave no construction timeline or official opening date.
  • Palestinian families and the rights group Adalah say portions of the Allenby plot were confiscated under Israel’s 1950 Absentees’ Property Law and have filed objections that raise legal and human-rights claims.
  • The move builds on President Trump’s 2017 recognition of Jerusalem as Israel’s capital and departs from the long-standing international practice of locating embassies in Tel Aviv.
  • The agreement is likely to deepen U.S.–Israeli strategic ties and prompt diplomatic pushback from international bodies and states that consider East Jerusalem occupied territory, with potential legal and political fallout to watch.