Israel's PM made the policy shift after pressure from Barack Obama. Mr Netanyahu insisted that recognition would have to be linked to Palestinian demilitarisation and, against the White House's wishes, he declined to change policy on Israel settlements on the West Bank. The Times:
"Binyamin Netanyahu threw down the gauntlet to the US last night, grudgingly agreeing to a limited Palestinian state that would be demilitarised and not in control of its airspace or borders. The hawkish Prime Minister insisted that Israel would never give up a united Jerusalem as its capital, and said that established Jewish settlements in the West Bank would continue to expand — despite explicit objections from Washington."
