East Jerusalem
In the Palestine Liberation Organization (PLO)'s Palestinian Declaration of Independence of 1988, Jerusalem is stated to be the capital of the State of Palestine. In 2000, the Palestinian Authority passed a law proclaiming Jerusalem as its capital, and in October 2002, this law was approved by chairman Yasser Arafat. Since that time Israel has shut down all offices and NGO organisations connected to the PLO in East Jerusalem, saying that the Oslo Accords do not permit the Palestinian National Authority to operate in Jerusalem. The Organisation of Islamic Cooperation (OIC) recognised East Jerusalem as capital of the State of Palestine on 13 December 2017.
Benjamin Netanyahu
During President Obama's Cairo speech on 4 June 2009 in which Obama addressed the Muslim world, Obama stated, among other things, "The United States does not accept the legitimacy of continued Israeli settlements." Following Obama's Cairo speech Netanyahu immediately called a special government meeting. On 14 June, ten days after Obama's Cairo speech, Netanyahu gave a speech at Bar-Ilan University in which he endorsed a "Demilitarized Palestinian State", though said that Jerusalem must remain the unified capital of Israel. Netanyahu stated that he would accept a Palestinian state if Jerusalem were to remain the united capital of Israel, the Palestinians would have no army, and the Palestinians would give up their demand for a right of return. He also argued the right for a "natural growth" in the existing Jewish settlements in the West Bank while their permanent status is up to further negotiation. Senior Palestinian official, Sereb Ereket, said that the speech had "closed the door to permanent status negotiations" due to Netanyahu's declarations on Jerusalem, refugees and settlements.