The Old City of Jerusalem is located in the dead-center of the overall City of Jerusalem. Jerusalem is located in Israel, which is in the Middle East. The State of Palestine claims East Jerusalem, which includes a number of modern Arab neighborhoods and the Old City.
There is much discussion concerning Jerusalem's proper legal nature and ownership:
Today, the status of Jerusalem remains one of the core issues in the Israeli-Palestinian conflict. Israel annexed East Jerusalem and considers it a part of Israel, although the international community has rejected the annexation as illegal and considers East Jerusalem occupied territory. The international community does not recognize Jerusalem as Israel's capital and most foreign embassies are located in Tel Aviv and its suburbs. Palestinians want East Jerusalem to be the capital of a future Palestinian state. Israel, however, considers the entire city to be a part of Israel following its annexation of East Jerusalem through the Jerusalem Law of 1980.