Dozens of people have been injured in clashes on the Gaza Strip and the West Bank during protests against United States President Donald Trump's recognition of Jerusalem as Israel's capital.
The announcement, that reversed decades of US policy, was also met with worldwide dismay.
Here's what Jerusalem locals think of the decision.
Mohammad Abu Al Hummus, 52, from East Jerusalem
"This decision is not a politician decision. Trump is ignoring the UN resolution. He thinks he is closing a business deal with lots of profits, so he can cover up for his crisis at home.
"The American people had realised that he is not a good president to lead the United States. He wants to earn the sympathy of the Israelis and the Jewish people back in the States."
Fruit shop owner Niseem Hikushler, 64
"Jerusalem has been ours for 3,000 years. This step is the first step in the direction of the peace process. The Arabs don't want to understand this.
"We're so happy. The Jewish people are so happy now. This process is at the beginning. The Czech Republic are next, they want to move their embassy to Jerusalem too. It's a start."
"He made a smart move that no-one before had the courage to do. Donald Trump made it clear, we are not against any solutions, we do have to come together to find a solution to the conflict.
"This step is not going to be a major obstacle in the way of the peace process. I don't think that should be at all."
Former Israeli soldier and student Joey Sacharow
"I felt like the whole move was a bit of an attention grab to take away from Donald Trump's failures. It's kind of a shame really. I feel like the political move hasn't connected to anything specific, but rather is him looking to create a diversion.
"I am a bit afraid, especially as an active reservist what military action might have to be taken to prevent violence. We've seen it in the past with two intifadas and I served in war myself and it's a bit terrifying to be honest."
College student Adnan Bark from the Old City
"It's very offensive to make our homes, schools and shops belong to Israel. I don't think that there will be any peace process now, the situation is getting bad, very bad.
"What a shame to see Jerusalem being called the capital of Israel. It's a shame really."
Abbu from East Jerusalem
"To me as a Muslim, we believe that this is our land, we don't care what he said actually, as a Muslim nation we know that this land belongs to the Palestinians, no matter what his name is.
"The American leader, I keep forgetting his name sometimes, it doesn't mean anything to us."
"I think he made something beautiful for Jerusalem, for the Jewish people, I think because of the Jewish relations in his family, no one thinks like him about Jerusalem."
"He promised and he delivered, if we can get help from him, let him help, I believe in him."