Israel leases confiscated Jerusalem land to US for $1 to build permanent embassy: report

The agreement comes seven years after Washington relocated its embassy from Tel Aviv to Jerusalem

A view of Jenin refugee camp, as Israeli heavy machinery operates on Palestinian land in the Israeli-occupied West Bank, June 16, 2026. Residents say Israeli authorities issued orders to confiscate the land for military purposes in the area where the machinery was deployed. REUTERS/Mohamad Torokman

Israel has signed an agreement with the United States to hand over a plot of land in Jerusalem for $1 to build the permanent site of the US Embassy there, according to Turkey’s state news agency Anadolu.

Israeli Foreign Minister Gideon Saar and US Ambassador to Israel Mike Huckabee signed the agreement on Wednesday in the presence of Jerusalem Mayor Moshe Lion, the Israeli foreign ministry said.

Under the deal, the US will lease the land for 99 years and pay Israel $1, Huckabee said.

The land is set to be used for a permanent embassy compound in Jerusalem, replacing the temporary site that opened in 2018.

During his first term in office in December 2017, US President Donald Trump recognised Jerusalem as Israel’s capital and ordered the embassy’s move from Tel Aviv.

The temporary US Embassy opened in Jerusalem in May 2018.

That move drew broad international criticism at the time, with many countries and international bodies calling it a breach of the longstanding consensus over the city’s status.

In 2022, rights group Adalah said the land set aside for the permanent embassy compound had been confiscated from Palestinians under Israel’s 1950 Absentees’ Property Law.

According to Adalah, archived records show the land belonged to Palestinian families before 1948 and had been leased to British Mandate authorities.

The group said the expansion of the US Embassy on the site and the confiscation of the land breach international law, citing Article 46 of the Hague Regulations, which bars the seizure of private property.

The United Nations considers East Jerusalem part of Palestinian territory occupied by Israel in 1967 and says any move aimed at changing the city’s legal or political status carries no legal weight under international law.

Despite the relocation of the US Embassy in 2018, most countries still keep their embassies in Tel Aviv in line with the international position on Jerusalem’s disputed status.