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
On June 14, in what was understood as a response Obama's Cairo speech, Netanyahu gave a speech at Bar-Ilan University in which he endorsed, for the first time, a "Demilitarized Palestinian State", after two months of refusing to commit to anything other than a self-ruling autonomy when coming into office. Netanyahu also stated that he would accept a Palestinian state if Jerusalem were to remain the united capital of Israel but open to all religions, the Palestinians would have no military, and the Palestinians would give up their demand for a right of return. He also claimed the right for a "natural growth" in the existing Jewish settlements in the West Bank while their permanent status is up to further negotiation. In general, the address was viewed as a significant turnaround from his previously hawkish positions against the Israeli–Palestinian peace process.