Jerusalem is Israel's capital: US

                                  Embassy to be moved out of Tel Aviv

Donald Trump delivers a statement on Jerusalem White House.

U.S. President Donald Trump reversed decades of policy on Wednesday and recognized Jerusalem as the capital of Israel, despite warnings from around the world that the gesture will further drive a wedge between Israel and the Palestinians.

"I have determined that it is time to officially recognize Jerusalem as the capital of Israel," Mr. Trump said. "While previous Presidents have made this a major campaign promise, they failed to deliver. Today, I am delivering."

In a speech at the White House, Mr. Trump said his administration would also begin a process of moving the U.S. embassy, which is expected to take years.

Trump aides contend the move reflects the reality of Jerusalem as the center of Jewish faith and the fact that the city is the seat of the Israeli government.

'Long overdue' 

Mr. Trump also called his decision "along step to overdue" advance the peace process. He said his decision marked the start of "new approach" to solving the thorny conflict between Isreal and the Palestinians.

A Palestinian envoy said decision as a declared of war in the region.

Senior administration officials said on Tuesday evening that the formal recognition of  Jerusalem as Israel's capital did not prejudice a possible settlement between the two parties on its status later.

The construction of the new embassy in Jerusalem would be a matter of years, not months, an official said. They said the location of the U.S. embassy had no bearing on the peace process.