The ceremony to inaugurate the United States' controversial embassy in Jerusalem began on Monday after deadly clashes along the Gaza Strip's border with Israel earlier in the day.
The ceremony moving the US embassy in Israel from Tel Aviv to Jerusalem began with the US national anthem.
US ambassador to Israel David Friedman then spoke and President Donald Trump was given a standing ovation when he mentioned him.
Friedman referred to the embassy's location as "Jerusalem, Israel" drawing wild applause.
Earlier in the day, violent clashes erupted along the Gaza Strip's border, leaving 37 Palestinians dead from Israeli fire and hundreds wounded in the conflict's bloodiest day in years.
Tens of thousands had gathered near the border in protest while smaller numbers of stone-throwing Palestinians approached the fence and sought to break through, with Israeli snipers positioned on the other side.
US Deputy Secretary of State John Sullivan led the Washington delegation at the inauguration that also included Trump's daughter Ivanka and her husband Jared Kushner, both White House aides, as well as Treasury Secretary Steven Mnuchin.
Some 800 guests were attending the ceremony.
Jerusalem's status is perhaps the thorniest issue in the Israeli-Palestinian conflict.
Israel considers the entire city its capital, while the Palestinians see east Jerusalem as the capital of their future state.
US President's daughter Ivanka Trump and her husband Senior White House Advisor Jared Kushner arrive for the controversial inauguration of the US embassy in Jerusalem on May 14, 2018