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In related news, Paraguay announced that it would move its embassy to Jerusalem by the end of the month, in a ceremony to be attended by President Horacio Cartes.

Turkish President Recep Tayyip Erdogan had hosted OIC emergency summit on December 13 at Ankara where most countries had strongly condemned Trump's move.

The move overturns decades of global consensus on Jerusalem, a highly contested city, half of which was occupied and annexed by Israel following the 1967 War.

Jerusalem's city hall says it has put up road signs pointing to the new U.S. Embassy, which is set to move to the contested city next week.

A worker hangs a road sign directing to the United States embassy, in the area of the United States consulate in Jerusalem, on May 7, 2018. "Jerusalem is our capital", she said.

The Romanian government has reportedly approved a memorandum to assess the embassy's relocation from Tel Aviv to Jerusalem (al-Quds), which is not recognized internationally as the Israeli capital due to a rival claim from Palestinians, Sputnik reported. "I thank President Trump or making this historic moment come to fruition", he said in a statement released by his office.

The global community largely recognizes Tel Aviv as Israel's capital.

The U.S. hopes there is still a possibility for peace, however. "The relationship has never been better", Trump said of Israel.

Paraguay is set to become the third country, after the U.S. and Guatemala, to transfer its embassy from Tel Aviv to Jerusalem, Israel said Monday.

Earlier, US Embassy road signs were erected in Jerusalem on Monday a week before Washington was due to relocate its mission, a move that has infuriated the Arab and Muslim worlds. On February 23, the State Department announced the new embassy will open in May.