Trump recognises Jerusalem as Israel's capital, in reversal of policy

Defying dire, worldwide warnings, President Donald Trump on Wednesday broke with decades of US and international policy by recognising occupied Jerusalem as Israel's capital.

A Palestinian envoy said the Trump decision was a declaration of war in the Middle East.

Despite urgent appeals from Arab and European leaders and the risk of anti-American protests and violence, Trump declared that he was ending an approach that for decades has failed to advance the prospects for peace. He also for the first time personally endorsed the concept of a "two-state solution" for Israel and the Palestinians, provided both sides agree to it.

"I have determined that it is time to officially recognise Jerusalem as the capital of Israel," he said in a White House address, calling it "overdue" and in the best interests of the United States. He said recognition acknowledged the "obvious" that Jerusalem is the seat of Israel's government despite the disputed status that is one of the key elements in the Israeli-Palestinian conflict.

"While previous presidents have made this a major campaign promise, they failed to deliver. Today, I am delivering. This is nothing more or less than the recognition of reality," he said.

Trump, however, said Jerusalem must remain the holy site for three major religions.

Trump also directed that the State Department begin the process of moving the US Embassy from Tel Aviv to Jerusalem as required by US law. Officials said, however, that the move will take years to complete.

Israeli Prime Minister Benjamin Netanyahu hailed Trump's declaration as historic and urged other nations to move their embassies to Jerusalem. - AP