"For decades, strong bilateral relations have fueled and reinforced significant U.S.-Israel cooperation in many areas, including regional security. Nonetheless, at various points throughout the relationship, U.S. and Israeli policies have diverged on some important issues. Significant differences regarding regional issues--notably Iran and the Palestinians--arose or intensified during the Obama Administration. Since President Donald Trump's inauguration, he and Israeli Prime Minister Binyamin Netanyahu have discussed ways 'to advance and strengthen the U.S.-Israel special relationship, and security and stability in the Middle East.' Since late 2016, a number of developments involving President Trump, the Obama Administration, Israeli leaders, and various other actors (including Members of Congress) have affected U.S. policy. They include several controversies regarding Israeli-Palestinian issues amid the U.S. presidential transition, including the following: 1) The future of U.S. policy regarding a two-state solution and regional Arab involvement; 2) Israeli settlements in the West Bank and East Jerusalem; and 3) A possible move of the U.S. embassy in Israel to Jerusalem. Amid the transition, Netanyahu and other Israeli leaders have also sought to influence the incoming Administration's stance on the 2015 Iran nuclear deal (the Joint Comprehensive Plan of Action, or JCPOA) and Iran's role in the region. Also, in early January 2017, a legal probe of Prime Minister Netanyahu turned into a criminal investigation--in connection with allegations of bribery and receipt of improper gifts--that some observers speculate could threaten his term of office. Netanyahu has dismissed the allegations."
CRS Report for Congress, R44245
Federation of American Scientists: http://www.fas.org/sgp/crs/index.html