AKIPRESS.COM - Paraguay's new government has announced that it will move its embassy in Israel back to Tel Aviv - just three months after shifting it to Jerusalem, BBC reports.

President Mario Abdo Benítez, who was sworn in last month, said he wanted to help achieve "a just and durable peace" in the Middle East.

In response, Israel said it would close the Israeli embassy in Paraguay.

However, the Palestinian Authority said it would "immediately" open an embassy in the South American country.

Israeli Prime Minister Benjamin Netanyahu said Paraguay's move had cast a shadow on the countries' relations.

Israeli sovereignty over Jerusalem has never been recognised internationally, and according to the 1993 Israel-Palestinian peace accords, the final status of Jerusalem is meant to be discussed in the latter stages of peace talks.

Since 1967, Israel has built a dozen settlements, home to about 200,000 Jews, in East Jerusalem. These are considered illegal under international law, though Israel disputes this.