FIRST AIRED: December 15, 2018

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00:00:00
>> Australia now recognizes West Jerusalem is the capital of Israel.>> And with that, Australian Prime Minister Scott Morrison reversed decades of Middle East policy, announcing Saturday that Australia will open trade and defense offices in West Jerusalem, and hopes to move its embassy out of Tel Aviv once the status is confirmed.
00:00:22
It's a move that risks inflaming tensions between Israel and Palestinians.
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e status of the city remains one of the biggest obstacles to a peace agreement between the two sides.>> Congratulations.>> This decision comes months after US President Trump relocated the American embassy.>> Thank you.>> Something that infuriated Palestinians, upset the Arab world and Western allies, but delighted Israel.
00:00:49
>> What a glorious day.>> They regard the whole city as their capital, including the eastern sector that they'd annexed in the 1960s. Morrison said on Saturday, the move is necessary to break a, quote, "rancid stalemate". He also reaffirmed Australia's support for a two state solution in the region that would see the east recognized as the capital of a Palestinian state.