US‑Israel tensions rise over Iran peace deal and Jerusalem embassy construction

The United States signed an agreement to build a permanent embassy on the Allenby Complex in Jerusalem, a move Israel hailed as proof of the "unwavering alliance" between the two nations. Human‑rights group Adalah criticised the site, saying it sits on land confiscated from Palestinians and violates their rights.

Relations soured weeks later when President Trump signed a Memorandum of Understanding with Iran that halted hostilities, reopened the Strait of Hormuz and lifted sanctions, but left the Iranian nuclear issue unresolved. Israeli leaders, including Finance Minister Bezalel Smotrich and Security Minister Itamar Ben‑Gvir, denounced the deal as harmful to Israel and the free world. Israel continued strikes in Lebanon, prompting sharp diplomatic exchanges, with Vice President JD Vance delivering a public rebuke of Israel at the White House.

The episode highlights a growing rift between the United States and Israel over regional security strategies and the future of the Iran conflict.