President Trump brokers the historic agreement. The United Arab Emirates and Israel will move toward bilateral diplomatic relations, and Israel will suspend plans to annex portions of the West Bank.
Some religious Jewish settlers are mounting vocal opposition as the prime minister prepares to annex parts of the territory. The wider Israeli public is confused and unenthused by the prospect.
Palestinian leaders have stopped coordinating with Israel on matters of daily Palestinian life, from tax collection to policing and medical care. Some Palestinians see the move as self-defeating.
In the shadow of Israeli watchtowers and settlements, Palestinians have set up improvised checkpoints to enforce a Palestinian Authority lockdown in areas where Palestinian police can't patrol.
The Trump Mideast plan would recognize Israeli sovereignty over land Palestinians want for a future state, but the administration urged Israel to hold off.
The Israeli prime minister made the controversial pledge just a week before the country's general election. It would leave a future Palestinian state surrounded by Israeli territory.
On Tuesday, the company said it will allow listings in the occupied West Bank, and will donate all the money it makes from those properties to non-profit humanitarian aid organizations.
In one of his last campaign moves, Prime Minister Benjamin Netanyahu made a far-right pledge: If re-elected, he would annex Jewish settlements in the occupied West Bank.
The prime minister's move appears to be aimed at galvanizing support among his nationalist base and right-wing political allies before Tuesday's election.
Rather than using two separate diplomatic missions to deal with Israelis and Palestinians, the U.S. will now have one. The U.S. diplomatic presence in Jerusalem dates to 1844.
The U.S. is ceasing aid to the Palestinians as a new anti-terror law takes effect Friday but will continue efforts to coordinate between Palestinians and Israelis.
The arrests in the fatal attack on a Palestinian woman last year has highlighted a rift between Israel's security establishment and hawks in the settler community.
Michigan Democratic Rep. Rashida Tlaib wore a thobe to her swearing-in ceremony, and women responded on social media with photographs of themselves wearing the elaborate embroidered Palestinian dress.
In the Holy Land, Santa doesn't come down the chimney or wait till kids are asleep to deliver presents. "Baba Noel" or Father Christmas hops out of a red van and makes house calls while they're awake.
Israeli Tourism Minister Yariv Levin described it as a "disgraceful surrender," while senior Palestinian negotiator Saeb Erekat called it an "initial positive step."
Seventeen-year-old Ahed Tamimi, who has become a symbol of Palestinian defiance, was released after serving an eight month sentence for slapping Israeli soldiers.
Have the past week's developments changed anything in their conflict? Demands are the same and impasses remain, but the United States' role in potential peace talks appears to be shifting.
The West Bank resident liked the elevated, computerized planters funded by USAID. But he wanted to figure out a way to build the system without relying on grants.
"To walk for three or four hours without checkpoints, without seeing soldiers ... it makes you feel, somehow, you can feel some free," says a hiker. There are scores of Palestinian hiking clubs.
The military's archaeology unit conducts excavations but keeps some information about the digs secret. "This approach raises suspicions," says an Israeli archaeologist who favors greater transparency.
One of the fundraisers for a group that's raised millions for a seminary in the settlement is Trump's pick for ambassador to Israel. Trump and his son-in-law have made donations to the group.
The law voted on by Israel's parliament legalizes almost 4,000 unauthorized homes on private Palestinian land in the West Bank. Critics say the move is a massive blow to any future peace deal.
