What next in the Middle East after dramatic US policy shift on Jerusalem?

The dramatic US policy shift on contested Jerusalem is seen by the Western-backed Palestinian leadership as a dangerous betrayal and game changer that is bound to propel them into a risky confrontation with the US and Israel on the global stage.

Palestinian leader Mahmoud Abbas has not decided yet whether to formally abandon US-led negotiations with Israel, a troubled process that after two decades has failed to bring the Palestinians closer to statehood.