The United States signed an agreement on Wednesday to construct a permanent embassy compound in southern Jerusalem, a move Israeli officials described as cementing an “unbreakable alliance” between the two countries. US Ambassador Mike Huckabee and Israeli Foreign Minister Gideon Saar formalised the land allocation at a ceremony in Jerusalem, with Huckabee stating the new complex would serve as the “mothership of diplomatic activities” and that the American flag would be planted on Jerusalem soil. The embassy will be built at the Allenby compound, replacing the temporary arrangements that have been in place since the Trump administration relocated the mission from Tel Aviv in 2018.

Separately, indirect technical talks between the United States and Iran resumed in Doha on Tuesday evening and continued through Wednesday, according to sources cited by Reuters and a diplomat speaking to Agence France-Presse. The discussions, mediated by Qatar and Pakistan, focus on securing shipping through the Strait of Hormuz and consolidating a durable ceasefire. President Donald Trump told reporters that the “nuclear disarmament process is progressing well” and that recent meetings in Qatar had been “very good,” while also noting that oil prices had fallen to $68 a barrel, a level he said was lower than at the start of military strikes aimed at preventing Iran from obtaining a nuclear weapon.

Viewed from Jerusalem, the embassy agreement reinforces a strategic alignment that Israeli officials say has been deepened by months of joint military operations against Iran. Saar described Israel as Washington’s most important strategic asset in the Middle East, while Huckabee, in a social media post, asserted that Israel is “vital for the US and its interests in the region.” The signing comes amid reported tensions between Trump and Prime Minister Benjamin Netanyahu over the trajectory of the Iran conflict, and as the two allies navigate the aftermath of a military campaign that included what Trump called three nights of heavy targeting inside Iran.

Palestinian officials have long maintained that East Jerusalem must serve as the capital of a future Palestinian state, and the 2017 US recognition of Jerusalem as Israel’s capital broke with decades of international consensus that the city’s final status should be determined through negotiations. Most countries continue to keep their embassies in Tel Aviv, citing relevant UN resolutions and international law. The Doha talks, meanwhile, are built on a 14-point memorandum of understanding signed in June that was intended to halt hostilities, reopen the Strait of Hormuz, and create a 60-day window for a permanent peace agreement. Iranian officials, speaking to Reuters, said Tehran is determined to secure international recognition of its control over the strait and its right to levy fees on vessels, and would use force if necessary. The next round of technical meetings is expected to address these demands alongside the release of six billion dollars in frozen Iranian assets.