Paraguayan President Santiago Pena pledged on Thursday to "always stand by the people of Israel" as he inaugurated his country's embassy in Israel after moving it from Tel Aviv to occupied Jerusalem for the second time.

"We were with you, we are with you, and we will always stand with the people of Israel," Bina said at the opening ceremony, which was attended by Israeli Prime Minister Benjamin Netanyahu. Netanyahu said, "Jerusalem is the capital of Israel. It will always remain the capital of Israel. It will be the united capital of Israel. It will never change."

The status of Jerusalem is one of the most sensitive issues in the Palestinian cause, with Israel occupying East Jerusalem in 1967 and later annexing it in a move not recognised by the international community.

Paraguay's embassy had been located in the coastal city of Tel Aviv for decades, but in 2018 former President Horacio Cartes ordered it moved to Jerusalem. Mario Abdo, who succeeded Cartes as president, then abruptly announced the cancellation of Cartes' order and the return of the embassy to Tel Aviv.

In 2017, then-US President Donald Trump unilaterally recognized Jerusalem as the capital of Israel, sparking Palestinian anger and international condemnation.

On May 14, 2018, the United States moved its embassy to Jerusalem. Two days later, Guatemala announced it would follow suit, followed by Paraguay, before the latter backed down in September of that year.