In Israel, Romney talks Iran, angers Palestinians
But the Palestinians were infuriated, saying his remarks were "harmful to American interests in our region."
"They they harm peace, security and stability," Palestinian negotiator Saeb Erakat told AFP.
"Even if this statement is within the US election campaign, it is unacceptable and we completely reject it. The US election campaign should never be at the expense of the Palestinians," he said.
"Romney is rewarding occupation, settlement and extremism in the region with such declarations."
Israel, which occupied the largely Arab eastern sector during the 1967 Six-Day War and later annexed it, claims both halves of the city to be its "eternal and undivided capital."