Secretary of State Rex Tillerson faced stern feedback from some of his European counterparts over the Trump administration's controversial foreign policies like recognizing Jerusalem as the Israeli capital and decertifying the Iran nuclear deal.
"President Trump remains committed to achieving a lasting peace agreement between the Israelis and the Palestinians and is optimistic that peace can be achieved", a second official said.
No matter how they feel about this issue, most Americans hope that violence does not erupt in the region because of the U.S. action Wednesday.
Similar scenes were witnessed in the main square of Gaza City, where protesters waved national flags and pictures of late Palestinian president Yasser Arafat, and in the southern Gaza strip.
"He will say that the United States government recognizes that Jerusalem is the capital of Israel", a senior administration official said, speaking on condition of anonymity.
Trump's Mideast peace team has held months of meetings with Israeli, Palestinian and Arab leaders for nearly a year ahead of an expected peace proposal.
Netanyahu lauded Israel's expanding relations with the world as he spoke at a diplomatic conference in Jerusalem, describing a "tsunami of diplomatic, economic, security and technology ties".
Egypt, which forged the first Arab peace deal with Israel in 1979, rejected Trump's decision and said it did not change Jerusalem's disputed legal status.
Likewise, Brazil moved its capital from coastal, crowded Rio de Janeiro to inland Brasilia in 1961 - the idea being to build a brand new capital "to bring progress to the interior of Brazil", as architect Oscar Niemeyer described it.
The Council of the League of Arab States released a statement calling the recognition of Jerusalem as Israel's capital an act of "open aggression" against "the rights of the Palestinian people and all Muslims and Christians".
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The officials said numerous logistical and security details, as well as site determination and construction, could take three or four years to sort out.
So this could be done with the stroke of a presidential pen and a flourish.
But the Palestinians want the eastern sector as the capital of their future state and fiercely oppose any Israeli attempt to extend sovereignty there.
And at worse it could lead to serious violence in many parts of the region. It remained unclear, however, when he might take that physical step, which is required by U.S. law but has been waived on national security grounds for more than two decades.
"The US no longer sees the world as a global community, but as a fighting arena where everyone has to seek their own advantage", Gabriel said at the Berlin Foreign Policy Forum on Monday. One of them, though, acknowledged short-term tensions and expressed frustration about international criticism of the announcement even before the details were known.
Traditionally, American presidents have viewed Jerusalem as the subject of negotiations with the Palestinians.
Tillerson told reporters Wednesday at a NATO summit in Brussels that he saw a "very good opportunity" for Middle East peace.
The state TV's website quoted Ayatollah Ali Khamenei as saying that "the victory will ultimately be for the Islamic nation and Palestine". Abbas responded by warning Trump that the move would have "dangerous consequences", according to the Palestinian president's spokesman.
French President Emmanuel Macron said he did not support Trump's "unilateral" move.
"The sad truth is there is no peace process right now", said Rob Leikind, director of the American Jewish Committee. The U.S. would be only country to move its embassy away Tel Aviv. He called the world leaders "wrong" who are lining up against the U.S. making any adjustment in the situation.
Kushner and Greenblatt expect in the long run Trump's announcement won't hurt and could help prospects for peace, the two officials said.