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What to watch: Israeli officials think there is a chance Trump will sign the waiver and not move the embassy for the next six months, but at the same time declare that Jerusalem is the capital of Israel. If that happens, it will likely cause an angry response from the Palestinians and some Arab states, including Saudi Arabia and Jordan.
The big picture: The status of Jerusalem is one of the core issues of the Israeli-Palestinian conflict. A presidential announcement that Jerusalem is the capital of Israel will make it harder for the Trump administration to promote the peace initiative it has been working on for the past few months.
Via Axios