President Donald Trump has announced that the US now recognises Jerusalem as Israel's capital, overturning decades of official US policy.
Mr Trump described the move as "a long overdue step" to advance the Middle East peace process.
The fate of the ancient city is one of the thorniest issues between Israel and the Palestinians.
Israel called Mr Trump's move "historic" but there has been sharp international criticism.
Mr Trump said the US still supported a two-state solution to the longstanding conflict, if approved by both sides, which would essentially see the creation of an independent Palestinian state living alongside Israel.
Palestinian President Mahmoud Abbas called Mr Trump's announcement "deplorable", saying the US could no longer be a peace broker.
Eight of the 15 nations who are currently members of the United Nations Security Council have called for the body to hold an urgent meeting on the US decision by the end of the week.