"The United States remains fully committed to facilitating a lasting peace agreement," Trump said. "The United States will always be a great friend of Israel and a partner in the cause of freedom and peace."
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In December, Donald Trump announced his decision to recognize Jerusalem as Israel's capital and instructed the US State Department to launch the process of moving the US Embassy, located in Tel Aviv, to Jerusalem.
Benjamin Netanyahu at Embassy Opening
Israeli Prime Minister Benjamin Netanyahu said that "this is a day that will be engraved in our national memory for generations," speaking at the ceremony in Jerusalem.
"We are in Jerusalem and we are here to stay," Netanyahu added.
Israeli Prime Minister concluded his speech by calling Jerusalem the "eternal, undivided capital of Israel."
The move prompted criticism from a number of states, particularly Palestine and countries in the Middle East, and triggered a wave of protests in the region.
Israel considers Jerusalem its capital, including the eastern part of the city, seized from Jordan during the Six-Day War in 1967.
The international community does not recognize the occupation of East Jerusalem, claiming that the status of the city should be determined on the basis of an agreement with the Palestinians, who claim the eastern part of Jerusalem to be their capital.