Netanyahu: Trump ‘did a great service for peace’ with Jerusalem announcement

Israeli Prime Minister Benjamin Netanyahu praised President TrumpDonald John TrumpGrassroots America shows the people support Donald Trump Trump speaks to rebel Libyan general attacking Tripoli Dem lawmaker: Mueller report shows 'substantial body of evidence' on obstruction MORE's decision to recognize Jerusalem as the Israeli capital in an interview on Sunday, calling the move "a great service for peace." 

"He did a great service for peace because peace can only be based on truth, on reality. And denying the simple fact that Israel's capital is Jerusalem is — pushes peace backward by creating an illusion, a fantasy. You can't build peace on fantasy," Netanyahu told CNN's Fareed Zakaria. 

"The seat of government is in Jerusalem. This has been the case for the 70 years of Israel's existence that we're celebrating now. Jerusalem has been the capital of the Jewish people since the time of King David. That's only 3,000 years ago," he said. 

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"Under any peace agreement, you know that the capital of Israel will continue to be Jerusalem, and the seat of our government will continue to be in Jerusalem," he continued.

Trump announced in December that the U.S. would break with its global counterparts by recognizing Jerusalem as the Israeli capital. 

The international community recognizes Tel Aviv as the country's capital and the U.S. Embassy is currently located there. 

Palestinians view east Jerusalem as the capital of a future independent state. 

Trump suggested last week that there could be more funding cuts for Palestinians if they did not return to peace negotiations. 

"That money is on the table and that money is not going to them unless they sit down and negotiate peace," Trump said alongside Netanyahu at the World Economic Forum in Davos, Switzerland.