The Israeli law makes it harder to divide the contested capital of Jerusalem in any future deal with the Palestinians. Israel says the city is its capital, Palestinians say East Jerusalem has always been their capital. It all could have a dramatic impact on any peace deal between Israel and Palestine - with some saying it's yet another fatal blow to the two-state solution.
On Inside Story, an in-depth discussion on the consequences of the latest law.
Presenter: Adrian Finighan | Guests: Mouin Rabbani - Political Analyst and Senior Fellow, Institute for Palestine Studies; Robbie Sabel - Former legal adviser to Israel's Foreign Ministry; Geoffrey Aronson - Middle East Institute
