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.
2010–11 Israeli–Palestinian peace talks
In February 2011, Israel offered to ease economic and security restrictions against the Palestinians, which reportedly included allowing additional Arab construction in East Jerusalem, giving the Palestinian Authority security control in seven West Bank cities, and discussing a proposed Palestinian Authority gas field alongside an Israeli one off the coast of Gaza, on condition that the Palestinian Authority resume direct talks. The proposal was agreed to by Middle East Quartet chief Tony Blair, and rejected by the Palestinians. Palestinian negotiator Saeb Erekat called the Israeli proposal "just a trick and procrastination", stating that "what Netanyahu should do, if he wants to build confidence, is immediately stop settlement construction in the West Bank and East Jerusalem and recognize a Palestinian state on the territories occupied in 1967", called on Western nations to "stop dealing with Israel as if it is above the law", and "reach a historic decision that will recognize a Palestinian state within the 1967 borders and East Jerusalem as its capital", and urged the Quartet to force Israel to halt settlement construction "including in Jerusalem". The following day, Israel approved the construction of 13 additional Jewish homes in the East Jerusalem neighborhood of Sheikh Jarrah.