John McCain will recognise Jerusalem as Israel's capital
McCain's vice-presidential candidate Sarah Palin: "building our embassy, also, in Jerusalem, those things that we look forward to being able to accomplish with this peace-seeking nation."
Until now, America's embassy has been in Tel Aviv. Every other country in the world also has their embassy in Tel Aviv (except Micronesia) because they have agreed to wait until the final status of Jerusalem is settled.
Tel Aviv is the de facto capital at the UN. Only Israel - NOT EVEN AMERICA, not even Bush - recognises Jerusalem as the capital.
This is a massive step. There are three main issues in the Palestine-Israel conflict: the refugees, Jerusalem and the settlements.
In 2004, Bush said that some settlements will have to remain - breaking with decades of consistent messages that the settlements will be sorted out in the final status negotiations.