The Knesset has approved a law that forbids the opening of consulates in Jerusalem, allowing only the opening of embassies. The provision, as CNN points out, aims to strengthen the disputed claim of the Israeli government on Jerusalem as the capital of the Jewish state.
So far, only a handful of countries have their embassy in Jerusalem, including the United States, which moved its main diplomatic mission there during the Trump Administration. Most nations have their embassies in Tel Aviv and lower-ranking diplomatic missions in East Jerusalem or Ramallah, which serve as the main representation in the Palestinian Territories.
The status of Jerusalem has always been one of the most difficult and delicate issues in the Israeli-Palestinian conflict. Since the Palestinians also claim Jerusalem as their capital, many states have avoided recognizing the city as the capital of Israel and opening embassies there.