Australia recognizes west Jerusalem as Israel's capital

SYDNEY - Australia has decided to formally recognize west Jerusalem as Israel's capital, but won't move its embassy until there's a peace settlement between Israel and the Palestinians, Prime Minister Scott Morrison announced on Saturday.

Morrison said in a speech that Australia would recognize east Jerusalem as Palestine's capital only after a settlement has been reached on a two-state solution. The Australian Embassy won't be moved from Tel Aviv until such a time, he said.

While the embassy move is delayed, Morrison said his government would establish a defense and trade office in Jerusalem and would also start looking for an appropriate site for the embassy.