It claims sovereignty in violation of international law, and despite the fact that the international community wholly rejects its claim to sovereignty. Disputed implies an equality of claims which does not exist in this case. Israel is clearly and unambiguously a Fourth Geneva Convention military occupier under international law. Very well, in this case you must also apply it to west Jerusalem, and to all of the areas that are now Israel that were seized from Palestinians in 1948, and whose true owners still assert their internationally recognized right to return to their property. The fact that you don't would indicate a double standard and a clear bias towards Israeli claims.
Annexation is the step which follows occupation.