The primary objective of this study is to investigate the underlying motivations and subsequent consequences associated with President Trump's decision to officially recognise Jerusalem as the capital of Israel. This research employs a qualitative approach to investigate the historical and contentious decision made by Trump, exploring the underlying motives (both internal and external), the subsequent reactions, and the overall impact on the peace process between Palestine and Israel. The study proceeded to analyse the response of Joe Biden. The findings indicate that Trump's decision was influenced by his religious beliefs, political stance, and historical reputation, as well as other contributing factors such as Arab vulnerabilities and the perceived bias of US policy towards Israel. Moreover, the principal stakeholders, namely Arab and Muslim nations, responded unfavourably to the decision made by President Trump. The aforementioned action has significantly undermined the United States' credibility in its efforts to foster peace in the Middle East. Furthermore, it has been noted that the administration led by Joe Biden is focused on the restoration of diplomatic ties with Palestine, and seeks to build upon this initiative.