U.S. sees Palestinian state on most of West Bank, some of East Jerusalem

Israeli television said on Wednesday that U.S. President Donald Trump’s Middle East peace plan would propose a Palestinian state on as much as 90 percent of the occupied West Bank, with a capital in East Jerusalem - but not including its holy sites.

The White House, which has kept details of the plan under wraps and said its release could still be months away, dismissed the report by Israel’s Reshet 13 TV as inaccurate speculation.

Citing what it said was a source briefed by the Americans, the television report said the plan would entail Israel annexing Jewish settlement blocs in the West Bank while isolated settlements would either be evacuated or their construction halted.

Trump wants the proposed Israeli moves to be supplemented by territorial swaps with the Palestinians, and for East Jerusalem’s walled Old City - site of major Jewish, Muslim and Christian shrines - to be under Israeli sovereignty but with the joint management of the Palestinians and Jordan, the report said.

It said “most Arab neighborhoods” in East Jerusalem would be under Palestinian sovereignty as a future capital.