How does his decision to move the embassy make sense in that context?

Here’s a quote from that article, to illustrate how people saw the Trump government on Israel at that moment:

Every previous US administration has been pro-Israel but made some effort to understand and respond to the Palestinian narrative, says Mr Miller.

This one is so “deeply ensconced” in the Israeli narrative it has crossed a red line, he says.

If so, it will be difficult for it to keep propping up the framework, with unpredictable results.

It is true that key Arab countries seem more willing to sanction a settlement less favourable to the Palestinians than before because they want Israel as an ally against Iran.

But Mr Trump’s decision on Jerusalem, and Israel’s heavy-handed approach in Gaza, reduces their room for manoeuvre.