A spokesman for the US State Department said that the status of Jerusalem is, in fact, a final status issue which will need to be resolved by the parties in the context of direct negotiations. That is not a change to longstanding policy.
Ned Price, US department of state spokesperson said during Press Briefing :” We must leave this to final status issues and so on this has been the longstanding policy of the United States, and I think this is what the Secretary was referring to.
Price added :” We abide by the principle that I just invoked in response to Said’s question, We believe it’s critical for Israel and the Palestinian Authority to refrain from unilateral steps that exacerbate tensions and undercut efforts to advance a negotiated two-state solution.
He also said :” We believe it is critical to refrain from unilateral steps that exacerbate tensions and that undercut efforts to advance a negotiated, two-state solution. And unilateral steps might include annexation of territory, settlement activity, demolitions, incitement to violence, the provision of compensation for individuals imprisoned for acts of terrorism. We have continued to emphasize that it is critical to refrain from all those activities.
What we have said :” and this is the principle that is at play – is that we encourage Israel and the Palestinians to avoid unilateral steps that put the prospects of a two-state solution further out of reach” he said.