
JERUSALEM—One of the last times Israelis clashed with Palestinians in Jerusalem, it led to a war with Gaza and the deaths of hundreds of people. That was in May, when Jewish settlers sought to expel Palestinians from their homes in the East Jerusalem neighborhood of Sheikh Jarrah and, later, when police stormed Al-Aqsa Mosque.
Now, the flash point appears to have moved to Al-Bustan, another neighborhood of East Jerusalem, where the spark isn’t an ownership dispute—as it was in Sheikh Jarrah—but a different long-festering issue: Israel’s policy of denying most building permits to Palestinians.