Australia has stressed it will remain a “steadfast friend to Israel” after reversing its decision to recognise West Jerusalem as the capital.
Penny Wong, Australia’s foreign minister, said the decision made four years ago under a previous government put the country at odds with other nations and had undermined peace.
In 2018 then-Australian prime minister Scott Morrison followed the lead of US president Donald Trump in recognising Jerusalem, a contested city, as the capital. This was welcomed by Israel but criticised by other states with either sympathies to Palestine or nervous the move could stoke further tensions.
Throughout the time, however, the Australian embassy has remained in Tel Aviv as debate has rumbled on among other countries amid the Israeli-Palestine conflict.
Mr Morrison said they would not move their embassy until a peace settlement had been achieved. His Liberal party lost power in May and Anthony Albanese’s Labor party has since decided against the policy - which Ms Wong called a "cynical play" to win over Jewish voters.
She said: “I regret that Mr Morrison's decision to play politics resulted in Australia's shifting position, and the distress these shifts have caused to many people in the Australian community who care deeply about this issue.”
She added that Australia remains a "steadfast friend" to Israel.
The UK is also said to be considering moving its embassy to Jerusalem but so far the only other countries to do so are Honduras, Guatemala and Kosovo.
Palestinians claim East Jerusalem as their capital but the statutes have been disputed for decades.
Israel prime minister Yair Lapid said the Australian decision was a “hasty” move.
“We can only hope that the Australian government manages other matters more seriously and professionally,” he said.
"Jerusalem is the eternal and united capital of Israel and nothing will ever change that."