Serbia announced plans to move its embassy from Tel Aviv to Jerusalem, as neighbouring Kosovo agreed to normalise relations with Israel on Friday.
The moves follow US-brokered talks between the countries’ leaders in Washington DC this week.
President Donald Trump hailed the agreement between Israel and Kosovo as “another great day for peace with Middle East” and said more “Islamic and Arab nations will follow soon.”
He also described Serbia’s planned embassy move, set to happen in July next year, as “brave and historic”.
It comes after the US brokered the normalisation of relations between Israel and the United Arab Emirates, sparking hopes of improved ties between Israel and its Arab neighbours.
The US relocated its embassy to Jerusalem in May 2018, in a controversial move.