Secretary of State Marco Rubio has ordered the Office of Palestinian Affairs in Jerusalem to be merged into the US embassy, closing an important mission that provided diplomatic contact with Palestinians.
The move will restore the Palestinian Affairs Unit at the embassy, which US President Donald Trump created during his first term in office.
In a move that infuriated the Arab world, Mr Trump relocated the US embassy from Tel Aviv to Jerusalem in 2017, recognising Israel's claim to the whole city as its capital.
At the same time, he closed the consulate in Jerusalem, which had served as the main US point of contact with the Palestinians.
“This decision will restore the first Trump term's framework of a unified US diplomatic mission in Israel's capital that reports to the US ambassador to Israel,” State Department spokeswoman Tammy Bruce told reporters.
“Ambassador [Mike] Huckabee will take the steps necessary to implement the merger over the coming weeks. The United States remains committed to its historic relationship with Israel, bolstering Israel's security and securing peace to create a better life for the entire region.”
A means for Palestinians to speak directly to Washington was considered an important way for the US to manage its fragile ties with them, away from the close alliance with Israel.
The office in Jerusalem was Washington's point of contact with the Palestinian Authority, which has limited autonomy in the occupied West Bank, and with Palestinian people in the occupied West Bank, Jerusalem and Gaza.
Ms Bruce said the move did not reflect any change in the US “commitment to outreach” with Palestinians. She said it was part of a streamlining of the State Department in Washington, ensuring that offices on "the issues that are important are all working together".
Mr Rubio has not announced a new envoy to the Palestinians.
