President Donald Trump has unveiled long-awaited details of a US plan for solving the Israeli-Palestinian conflict, warning it may represent the last chance at statehood for the Palestinians.
"Today, Israel takes a big step towards peace," Mr Trump told a White House news conference, standing alongside visiting Israeli Prime Minister Benjamin Netanyahu as he revealed key points of the plan already strongly rejected by the Palestinians.
"My vision presents a win-win opportunity for both sides, a realistic two-state solution that resolves the risk of Palestinian statehood to Israel's security," Mr Trump said.
The plan was warmly welcomed by Israel's prime minister, who called it a "historic day" for the Jewish state.
The plan, Mr Trump said, proposes a four-year freeze of Israeli development in the area eyed for a future Palestinian state.
"Jerusalem will remain Israel's undivided, very important, undivided capital," Mr Trump stressed.
But the plan would also provide the Palestinians with a capital in occupied East Jerusalem, he said, while indicating that the West Bank would not be cut in half under the plan.
"We will also work to create a contiguous territory within the future Palestinian state, for when the conditions for statehood are met, including the firm rejection of terrorism," Mr Trump said as he called on the Palestinians to turn their back on the radical Hamas movement.
Calling it a "historic opportunity" for the Palestinians to achieve an independent state, Mr Trump said he had written today to Palestinian President Mahmud Abbas to enlist his support for the plan.
No Palestinian official was present at the launch although the ambassadors from three Arab nations - Oman, the United Arab Emirates and Bahrain - were at the White House.
"I explained to (Mr Abbas) that the territory allocated for his new state will remain open and undeveloped for a period of four years," Mr Trump said.
"This could be the last opportunity they will ever have."
"Palestinians are in poverty and violence, exploited by those seeking to use them as pawns to advance terrorism and extremism," the president added.
"They deserve a far better life."
Palestinians say they were never included in crafting the plan, which was overseen by Mr Trump's son-in-law Jared Kushner.
Palestinian Islamist movement Hamas immediately rejected the US proposal, after Mr Trump said Jerusalem would remain Israel's "undivided capital".
"We reject this deal. We won't accept any substitute for Jerusalem as the capital of the Palestinian state," senior Hamas official Khalil al-Hayya said.
Earlier, Palestinian Prime Minister Mohammed Shtayyeh urged international powers to boycott the plan, which he said was designed "to protect Trump from impeachment and protect Netanyahu from prison".
Mr Netanyahu faces corruption charges, as well as a tense election in just over a month where his right-wing Likud is neck-and-neck with Benny Gantz's centrist Blue and White party.
"It is not a Middle East peace plan," Mr Shtayyeh told a cabinet meeting. "This plan gives Israel sovereignty over Palestinian territory."
President Trump said yesterday that he believes they will eventually go along with the plan because he said it makes a lot of sense for everyone.