Israeli Prime Minister Benjamin Netanyahu said that an agreement with the UAE and US marked the start of a new era for the region but insisted annexation was still on the table.
In a nationally broadcast statement on Thursday, Mr Netanyahu said the “full and official peace” with the UAE would lead to co-operation in many spheres between the countries and a “wonderful future” for citizens of both countries.
The deal was agreed to in a conference call between Sheikh Mohamed bin Zayed, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the Armed Forces, US President Donald Trump and Mr Netanyahu.
"Today a new era began in the relations between Israel and the Arab world," he said at a televised press conference.
Under the terms of the deal, which Mr Trump said would be known as the Abraham Accord, Israel agreed to halt all annexation of Palestinian territories in exchange for establishing diplomatic ties with the UAE.
But Mr Netanyahu said there was no change to his plans to annex parts of the West Bank, only that they were on temporary hold and that implementing annexation would be done with US co-ordination.
He said the Trump administration had asked Israel to put its West Bank annexation plans on hold to move forward with the agreement on ties with the UAE.
The move by Mr Netanyahu risked criticism inside his own hard-line Likud Party, whose members strongly supported annexation.
He appears to be counting on Likud members – and the small, but influential settler movement – seeing that the peace agreement delivered more benefits than unilateral annexation.
Opinion polls have shown that annexation is not a high priority for the vast majority of the Israeli public.
While some moderate settler communities said the diplomatic ties were worth the price of annexation, chairman of the Yesha Council umbrella group of settlement councils, David Elhayani, said Mr Netanyhu had "betrayed my trust and the trust of the residents of Judea, Samaria and the Jordan Valley", Haaretz reported.
Mr Netanyahu also claimed more Arab nations would agree to ties after the historic decision.
“This deal shows the huge change in how Israel is seen in the Middle East," he said.
Meanwhile, a Palestinian Liberation Organisation official said he and his colleagues were not made aware of the agreement before Mr Trump’s announcement.
“We didn’t know,” he said. “I’m shocked.”
The official Palestine TV reported that President Mahmoud Abbas called an urgent meeting of his senior leadership to discuss the agreement and determine a position on it.
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Living in...
This article is part of a guide on where to live in the UAE. Our reporters will profile some of the country’s most desirable districts, provide an estimate of rental prices and introduce you to some of the residents who call each area home.
The Sky Is Pink
Director: Shonali Bose
Cast: Priyanka Chopra Jonas, Farhan Akhtar, Zaira Wasim, Rohit Saraf
Three stars
David Haye record
Total fights: 32
Wins: 28
Wins by KO: 26
Losses: 4
The candidates
Dr Ayham Ammora, scientist and business executive
Ali Azeem, business leader
Tony Booth, professor of education
Lord Browne, former BP chief executive
Dr Mohamed El-Erian, economist
Professor Wyn Evans, astrophysicist
Dr Mark Mann, scientist
Gina MIller, anti-Brexit campaigner
Lord Smith, former Cabinet minister
Sandi Toksvig, broadcaster
Company Fact Box
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Size (employees/revenue): Total team size: 65. Full-time employees: 25. Revenue undisclosed
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US PGA Championship in numbers
1 Joost Luiten produced a memorable hole in one at the par-three fourth in the first round.
2 To date, the only two players to win the PGA Championship after winning the week before are Rory McIlroy (2014 WGC-Bridgestone Invitational) and Tiger Woods (2007, WGC-Bridgestone Invitational). Hideki Matsuyama or Chris Stroud could have made it three.
3 Number of seasons without a major for McIlroy, who finished in a tie for 22nd.
4 Louis Oosthuizen has now finished second in all four of the game's major championships.
5 In the fifth hole of the final round, McIlroy holed his longest putt of the week - from 16ft 8in - for birdie.
6 For the sixth successive year, play was disrupted by bad weather with a delay of one hour and 43 minutes on Friday.
7 Seven under par (64) was the best round of the week, shot by Matsuyama and Francesco Molinari on Day 2.
8 Number of shots taken by Jason Day on the 18th hole in round three after a risky recovery shot backfired.
9 Jon Rahm's age in months the last time Phil Mickelson missed the cut in the US PGA, in 1995.
10 Jimmy Walker's opening round as defending champion was a 10-over-par 81.
11 The par-four 11th coincidentally ranked as the 11th hardest hole overall with a scoring average of 4.192.
12 Paul Casey was a combined 12 under par for his first round in this year's majors.
13 The average world ranking of the last 13 PGA winners before this week was 25. Kevin Kisner began the week ranked 25th.
14 The world ranking of Justin Thomas before his victory.
15 Of the top 15 players after 54 holes, only Oosthuizen had previously won a major.
16 The par-four 16th marks the start of Quail Hollow's so-called "Green Mile" of finishing holes, some of the toughest in golf.
17 The first round scoring average of the last 17 major champions was 67.2. Kisner and Thorbjorn Olesen shot 67 on day one at Quail Hollow.
18 For the first time in 18 majors, the eventual winner was over par after round one (Thomas shot 73).
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THE BIO
Favourite book: ‘Purpose Driven Life’ by Rick Warren
Favourite travel destination: Switzerland
Hobbies: Travelling and following motivational speeches and speakers
Favourite place in UAE: Dubai Museum
Living in...
This article is part of a guide on where to live in the UAE. Our reporters will profile some of the country’s most desirable districts, provide an estimate of rental prices and introduce you to some of the residents who call each area home.