Idan Roll says Washington knows Israel is opposed to move and understands political complexities in Jerusalem

Blinken tells Lapid he recognizes political sensitivity of reopening de facto mission to Palestinians in Israel's capital, says panel will allow sides to discuss matter discreetly

Invitation comes during phone call between top diplomats and aims to follow up on progress made during Bennett's White House meeting with Biden

US praises Israeli moves on Gaza, Jerusalem Foreign Ministry says, and two discuss Iran nuclear progress; pair to meet in US in October

Issue shaping up to become a point of conflict between Washington and Jerusalem, with Biden apparently determined to reverse the Trump move

Foreign minister also opens rift with Washington over its plans to reestablish de facto mission for Palestinians in capital, warning it could destabilize government

In call with US Jewish leaders, senior administration official present during Oval Office meet says US president told Bennett he plans to reopen de facto mission to Palestinians

The Trump administration said merging the capital's consulate into the embassy was more efficient. But diplomats claim it badly hampered their ability to reach out to Palestinians

Even though Trump moved the embassy last year, he continued to sign the waiver until the ambassador's official residence moved to the capital in March

Despite Trump boasting of cost-saving move to former consulate, diplomats said to eye forsaken plot in city's Arnona neighborhood, which Palestinians consider 'stolen property'