In a historic decision that overturns decades of US policy, on Wednesday, US President Donald Trump recognized the disputed city of Jerusalem as Israel's capital, a move that may trigger a fresh spate of violence in the Middle East.

While supporters of Donald Trump and the Israeli government rally behind the President's decision, Arab states have warned Mr Trump that this decision will compromise the stability of this already volatile region.

Taking to Twitter, the US President wrote that he has determined that it is "time to officially recognize Jerusalem as the capital of Israel" and that he will direct the State Department to relocate the American Embassy to Jerusalem from Tel Aviv.

Palestinian President Mahmoud Abbas, in a pre-recorded speech, said Jerusalem was the "eternal capital of the State of Palestine" and that Trump's move was "tantamount to the United States abdicating its role as a peace mediator."

Here are the highlights of the Jerusalem decision: