The controversial decision, which was promised by Trump during his 2016 campaign and appeals to his right-wing base, could lead to massive protests in the Middle East and elsewhere, Arab leaders warned.
"I have determined it is time to officially recognise Jerusalem as the capital of Israel," Trump said.
Trump made the major announcement from the White House.
The international community considers east Jerusalem illegally occupied by Israel and most countries have their embassies in Tel Aviv.
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