Israel has decided that the final status, as of now, is that Jerusalem is the undivided capital of Israel. Like so much in the world of Israel's enemies, Jerusalem is only important because it was, for a time, under their control, during which time, they let Jerusalem fall into ruin. Now that Jerusalem has been revitalised at huge expense and effort by Israel, Israel's enemies simply want to seize Jerusalem and claim it as booty for Allah.
Iraqi MP: Iraq may soon request Russian help against ISIS (Reuters)
from the article: U.S. warns Israel, Palestinians: Avoid inflammatory actions in Jerusalem