Jerusalem is holy to two religions - Islam and Christianity, Palestinian Authority Prime Minister Salaam Fayad said at the UN-organized interfaith peace conference on Wednesday night. Fayad failed to mention the importance of Israel's capital to the Jewish people, Israel Radio reported. "Jerusalem is home to the third most holy place to Islam, the place where Muhammad rose to the heavens, and the place where Jesus, the Christian, was resurrected," the Palestinian leader proclaimed. He added that Jerusalem was occupied in June 1967 and called to locate a future Palestinian state capital there. President Shimon Peres and Foreign Minister Tzipi Livni had addressed the forum earlier.