Israel has taken more and more pieces of Jerusalem and its
suburbs by force over the years since 1947, and Israel certainly claims that it has a right to hold these areas, but this does not mean that they are not occupied territory. And the Palestinians certainly have not granted Israel's claim that Jerusalem and its suburbs belong to Israel.
I could simply claim that a particular chunk of land belongs to me, but that wouldn't mean that it does, and my doing so wouldn't make the newspapers talk as if it did. Unless I were a US follower state like Israel, a state that receives more aid from the US than any other US follower state does.