The fate of Jerusalem has been a sore spot for Israel and Palestine, but, President Trump has declared that he recognises Jerusalem as the capital city of Israel.
When speaking at the White House, The US president said that he had "judged this course of action to be in the best interests of the United States of America, and the pursuit of peace between Israel and the Palestinians".
Why is this so significant?
Palestinians had already claimed East Jerusalem as the capital of its future state, and Israeli rule over Jerusalem has never been recognised up to this point.
Jerusalem also has sites within it that are sacred to Judaism, Islam and Christianity.
East Jerusalem was taken by Israel during the Six Day War in 1967, a part of Jerusalem that contains the Old City which is import to Judaism. Up until this point, it has not been recognised as part of Israel.
The reaction from the rest of the world.
Eight out of the 15 countries that are currently in the United Nations Security Council has called for an urgent meeting because of the US decision.
Prime Minister Theresa May has disagreed with Donald Trump’s decision calling it “unhelpful in terms of the prospects of peace in the region.”
UN Secretary-General Antonio Guterres calls the decision an “a moment of great anxiety" and claims "There is no alternative to the two-state solution. There is no Plan B,"
The US decision has also been met with substantial vocal opposition from Muslim’s, even US allies while demonstrations have been taken place in Gaza and Istanbul, Turkey.