WASHINGTON 

The U.S. announced Sunday it is shuttering its consulate in Jerusalem and merging it with its embassy there, effectively demoting the status of its main diplomatic mission to the Palestinians.

The move will take effect on Monday, ending the consulate's 175-year history and handing responsibilities for the U.S.'s relations with the Palestinians to its Israel ambassador, David Friedman.

Friedman has a long history of supporting and financing Israel's West Bank settlements, which are illegal under international law, and has been critical of establishing a Palestinian state alongside Israel.

As it announced the closure of the U.S.'s de facto Palestinian embassy, the State Department said the decision "was driven by our global efforts to increase the efficiency and effectiveness of our diplomatic engagements and operations."

"It does not signal a change of U.S. policy on Jerusalem, the West Bank, or the Gaza Strip," spokesman Robert Palladino said in a statement.

"We will continue to conduct all of the diplomatic and consular functions previously performed by U.S. Embassy Jerusalem. We will also engage in a wide range of reporting, outreach, and programming in the West Bank and Gaza Strip, as well as with Palestinians in Jerusalem, through a U.S. Embassy Palestinian Affairs Unit (PAU)," Palladino added.

The State Department announced in October that it would be taking the action following President Donald Trump's unilateral recognition of Jerusalem as Israel's capital, an action that led to the U.S. opening its Israel embassy in the contested city in May 2018 amid international outcry.

Trump's decision undercut decades-long underpinnings of Israel-Palestinian peace talks wherein the status of Jerusalem was to be determined as a matter of final-status negotiations.

The Palestinian leadership continues to reject any role for the U.S. in prospective peace talks with Israel over the matter as they continue to seek East Jerusalem as the capital of their future state.

The State Department said in its announcement of the consulate's closure that "specific boundaries of Israeli sovereignty in Jerusalem are subject to final status negotiations between the parties."

The Trump administration has taken a number of actions intended to ramp up pressure on the Palestinians, including slashing direct aid as well as funding for the UN agency tasked with assisting Palestine refugees, as Washington prepares to roll out its plan to end the conflict, which Trump said would be "the deal of the century."

Jared Kushner, Trump's son-in-law who has been leading U.S. efforts on the deal, said it would be unveiled after Israel's April elections.