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Israel and UAE to normalise ties in 'historic' US-brokered deal

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President Donald Trump, accompanied by from left, U.S. special envoy for Iran Brian Hook, Avraham Berkowitz, Assistant to the President and Special Representative for International Negotiations, U.S. Ambassador to Israel David Friedman, Trump's White House senior adviser Jared Kushner, and Treasury Secretary Steven Mnuchin, applaud in the Oval Office at the White House, Wednesday, Aug. 12, 2020, in Washington. AP

Israel and the UAE agreed Thursday to normalise ties in a landmark US-brokered deal, only the third such accord the Jewish state has struck with an Arab nation, in which it pledged to suspend annexation of Palestinian lands.

The bombshell news was broken by US President Donald Trump, in a tweet hailing a "HUGE breakthrough" and a "Historic Peace Agreement between our two GREAT friends".

Establishing diplomatic ties between Israel and Washington's Middle East allies, including the oil-rich Gulf monarchies, has been central to Trump's regional strategy to contain Iran, also an arch-foe of Israel.

Israeli Prime Minister Benjamin Netanyahu said it was a "historic day" and would launch a "new era" for the Arab world and Israel.

The Palestinians strongly rejected the deal, calling it a "betrayal" of their cause, including their claim to Jerusalem as the capital of their future state.

They also announced they were withdrawing their ambassador from the Emirates, and demanded an emergency Arab League meeting.

Israel's Prime Minister Benjamin Netanyahu announces full diplomatic ties will be established with the United Arab Emirates, during a news conference on Thursday, Aug. 13, 2020 in Jerusalem. AP

Palestinian Islamist group Hamas, which runs the coastal Gaza Strip, quickly said the agreement "does not serve the Palestinian cause".

A joint statement by Trump, Netanyahu and UAE's leader Sheikh Mohamed bin Zayed Al-Nahyan announced that they had "agreed to the full normalisation of relations between Israel and the United Arab Emirates".

It added that Israel would "suspend declaring sovereignty" over occupied Palestinian West Bank areas ― an idea proposed in Trump's controversial earlier plan to resolve the conflict.

Sheikh Mohamed quickly stressed in a tweet that "during a call with President Trump and Prime Minister Netanyahu, an agreement was reached to stop further Israeli annexation of Palestinian territories".

But Netanyahu said shortly afterwards in a national television address that he had only agreed to delay, not cancel, the annexations, that the plans remained "on the table" and that he would "never give up our rights to our land".

The controversial Trump plan, unveiled in January, had offered a path for Israel to annex territory and Jewish West Bank settlements, communities considered illegal under international law.

The Palestinians rejected it outright as biased and untenable, as did Israel's Arab neighbours, and it sparked fears of further escalation in a tense region. (AFP)