ISLAMABAD: US President Donald Trump on Wednesday recognised the disputed city of Jerusalem as the Israeli capital and announced to shift the US embassy from Tel Aviv to Jerusalem.

“It’s the right thing to do,” the US leader said in a speech from the White House.

US President announced his decision amid severe global criticism and warnings that the move would jeopardise the regional peace and create unrest among the Muslim block of the world.

With this decision, the process of moving the US embassy from Tel Aviv to Jerusalem has also kicked off.

In his historic address he said his decision marked the start of a “new approach” to solving the thorny conflict between Israel and the Palestinians. Trump 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.

He said that many presidents have said they want to do something and they didn’t do it. "Whether it’s courage or they changed their mind, I can’t tell you, I think it’s long overdue" he said.

The announcement leaves many angry US allies and leaders across the Middle East trying to find a measured response and hoping that after this decision, the region will not go into yet another round of bloodletting.

Pope Francis and the leaders of Saudi Arabia, Egypt, Jordan, the European Union, France, Germany and Turkey also warned Trump against the move.