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DUBAI/OCCUPIED JERUSALEM/WASHINGTON: Israel and the United Arab Emirates announced on Thursday that they will normalise diplomatic ties and forge a broad new relationship, a move that reshapes the order of Middle East politics from the Palestinian issue to Iran.

Under the accord, which US President Donald Trump helped broker, Israel has agreed to suspend its planned annexation of areas of the occupied West Bank. The agreement also firms up opposition to regional power Iran, which the UAE, Israel and the United States view as the main threat in the conflict-riven Middle East.

Israel had signed peace agreements with Egypt in 1979 and Jordan in 1994. But the UAE, along with most other Arab nations, did not recognise Israel and had no formal diplomatic or economic relations with it until now. The UAE becomes the first Gulf Arab country to reach such a deal with the Jewish state.

The agreement was the product of lengthy discussions between Israel, the UAE and the United States that accelerated recently, White House officials said. A joint statement said Trump, Israeli Prime Minister Benjamin Netanyahu and Abu Dhabi's Crown Prince Sheikh Mohammed Bin Zayed had "agreed to the full normalisation of relations between Israel and the United Arab Emirates".

"This historic diplomatic breakthrough will advance peace in the Middle East region and is a testament to the bold diplomacy and vision of the three leaders and the courage of the United Arab Emirates and Israel to chart a new path that will unlock the great potential in the region," the statement said.

In a separate statement, the crown prince stressed that the agreement would stop further Israeli annexation of Palestinian territories, which Israel has said had been awaiting a green light from Washington.

The agreement, to be known as the Abraham Accords, also gives Trump a foreign policy accomplishment as he seeks re-election on Nov. 3.

"HUGE breakthrough today! Historic Peace Agreement between our two GREAT friends, Israel and the United Arab Emirates," Trump wrote on Twitter.

In the White House Oval Office, Trump said similar deals are being discussed with other countries in the region.

The UAE said it would remain a strong supporter of the Palestinian people and that the agreement maintained the viability of a two-state solution to the longstanding Israel-Palestinian conflict. There was no immediate reaction from the Palestinians, who hope to create an independent state in the occupied West Bank, Gaza and East Jerusalem.

Netanyahu said the agreement represented a "historic day" for his country. It could also be a personal boost to Netanyahu, who is on trial for alleged corruption and whose domestic popularity has dropped over his handling of the coronavirus pandemic.

A senior Israeli official said applying Israeli sovereignty to areas of the West Bank was still on the agenda, adding, "The Trump administration asked us to temporarily suspend the (sovereignty) announcement so that the historic peace agreement with the UAE can be implemented."

'NIGHTMARE' FOR IRAN

US Secretary of State Mike Pompeo, who is on a trip to Central European countries, said: "This is an enormous, historic step forward. Peace is the right path forward."

Trump's special envoy Brian Hook called the deal a "nightmare" for Iran.

There was no immediate response from the Iranian government but the Tasnim news agency, affiliated with Iran's powerful Revolutionary Guards, called the accord "shameful".

Iran and Israel are arch foes. Israel is particularly concerned about suspected Iranian efforts to develop nuclear weapons, which Tehran denies.

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