JERUSALEM -- President Trump kept his campaign promise to move the, now recognized by the United States as Israel's capital. In a recorded message, Mr. Trump said "our greatest hope is for peace."
With about 800 in attendance, the mood inside the embassy was festive Monday. First daughter and White House senior adviser Ivanka Trump, along with husband and senior adviser Jared Kushner, led the American delegation.
Israeli Prime Minister Benjamin Netanyahu praised the move, calling it historic.
"What a glorious day. Remember this moment," he said.
Christians George and Cheryl Morrison traveled from Colorado, and said they have never been more proud to be American.
But just 10 miles away in Ramallah in the West Bank, "CBS Evening News" anchor Jeff Glor met Palestinians who are angry, believing that the move destroyed their dreams of making Jerusalem their capital.
"Jerusalem is for Palestinian people," said one protester. "This is our rights and our history. We need it every day, we need our rights."
Mustafa Barghouti, a doctor and longtime member of the Palestinian parliament, said he believes the two-state solution is in "serious trouble."
There were several marches taking place across the West Bank. At one of the flash points between the two sides, you could hear tear gas being deployed, and girls had to use their hands and hijabs to try and keep the gas out of their lungs. One had to be rescued by a volunteer team.
Palestinians argue the embassy move delays or scuttles peace efforts. They say the U.S. has taken sides, therefore disqualifying itself as a neutral peace negotiator. A long-time Palestinian negotiator told CBS News he would like to see other countries step in to play a bigger role in the peace process.
Dan Shapiro, the U.S. ambassador to Israel under President Barack Obama, told CBS News foreign correspondent Seth Doane the embassy move could be a good thing, but only if it was paired with a promise of a U.S. embassy to a future Palestinian state in east Jerusalem as part of a two-state solution.