Paraguay returns Israel embassy to Jerusalem

Paraguay's President Santiago Pena vowed on Thursday to stand with Israel, as he inaugurated the Latin American country's embassy after it moved from Tel Aviv to Jerusalem for a second time.

"We were with you, we are with you, and we will always stand with the people of Israel", Pena said during a ceremony to inaugurate the mission that Israeli Prime Minister Benjamin Netanyahu attended.

Jerusalem's status is one of the most delicate issues in the Israel-Palestinian conflict. Israel has occupied East Jerusalem since 1967, later annexing it in a move not recognised by the international community.

Israel treats the city as its capital, while Palestinians want East Jerusalem to become the capital of a future sovereign state.

Most foreign embassies to Israel are located in the coastal hub city of Tel Aviv in order to avoid interfering with negotiations between Israelis and Palestinians.

Paraguay moved its embassy to Jerusalem a first time in May 2018, before returning the diplomatic mission to Tel Aviv.

Israel was angered by the move, and closed its embassy in Asuncion in retaliation.

"Jerusalem is Israel's capital. It will always be Israel's capital. It will be the undivided capital of Israel. It will never change", Netanyahu said at Thursday's ceremony.

In 2017, then-US President Donald Trump unilaterally recognised Jerusalem as Israel's capital, causing Palestinian anger and the international community's disapproval.

On May 14, 2018, the US transferred their embassy to Jerusalem.

Two days later, Guatemala announced it would follow suit and transferred its embassy to Jerusalem.

Paraguay followed, before backtracking in September of that year under a new president.

Kosovo is also part of a handful of countries who moved their embassy to Jerusalem.