Paraguay is the third country after the United States and Guatemala to move its embassy to the disputed city. The status of Jerusalem remains a major hurdle to a peace deal between Israel and the Palestinians.
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Paraguay opened its new Israel embassy in Jerusalem on Monday, following in the footsteps of the United States and Guatemala.
The status of Jerusalem remains one of the biggest stumbling blocks in solving the conflict between Israel and the Palestinians, who with broad international backing want Israeli-annexed east Jerusalem as their future capital.
Who owns Jerusalem?
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Israel regards the entire city, including the eastern sector that it captured in the 1967 Middle East war, as its capital. The annexation was never internationally recognized and most global powers want the city's final status to be agreed upon in a peace deal between the two sides.
'Provocative and irresponsible measure'
Paraguayan President Horacio Cartes and Israeli Prime Minister Benjamin Netanyahu attended the ceremony.
"This is a historic day that strengthens ties between Paraguay and Israel," Cartes said.
"A great day for Israel. A great day for Paraguay. A great day for our friendship," Netanyahu responded. "You have not only the support of our government but the profound gratitude of the people Israel."
Hanan Ashrawi, an official of the Palestine Liberation Organization, criticized Paraguay's move.
"By adopting such a provocative and irresponsible measure that is in direct contravention of international law and consensus, Paraguay has conspired with Israel, the United States and Guatemala to entrench the military occupation and to seal the fate of occupied Jerusalem," Ashrawi said in a statement.
Trump's recognition of Jerusalem as Israel's capital - a timeline
As the opening date for the new US embassy approaches, DW takes a look at how Donald Trump's controversial decision came to fruition. His decision to recognize Jerusalem as Israel's capital sparked protests worldwide.
Image: Reuters/R. Zvulun
US Congress passes Jerusalem Embassy Act
Back in 1995, the US Congress passed the so-called Jerusalem Embassy Act, declaring that Jerusalem "should be recognized as the capital of the State of Israel." The act, however, also allowed the sitting president to delay the move by signing a waiver every six months. Bill Clinton, George W. Bush and Barack Obama all reissued the waiver throughout their presidencies, citing security concerns.
Image: picture alliance/AP Photo/O. Balilty
Trump makes campaign promise
During the 2016 US presidential campaign, Republican candidate Donald Trump promised that, if elected, he would relocate the US embassy from Tel Aviv to Jerusalem, describing the holy city as "the eternal capital of the Jewish people." Trump's declaration attracted a great deal of fervor within Israel and won over scores of Jewish and Evangelical voters in the US.
Image: Reuters/B. Ratner
Trump visits Jerusalem's Western Wall
In May 2017, Trump became the first sitting US president to visit the Western Wall. The site is located in Jerusalem's Old City, which Israel forces captured during the 1967 Six-Day War. According to reports, Trump considered fulfilling his Jerusalem pledge during the visit, but was advised against such a move by foreign policy officials who feared it would only stoke regional tensions.
Image: Reuters/J. Ernst
Trump formally recognizes Jerusalem as Israeli capital
During a speech at the White House on December 6, 2017, Trump said he had "determined it is time to officially recognize Jerusalem as the capital of Israel," adding that the move was a "recognition of reality." Trump cited the Jerusalem Embassy Act as one of the reasons behind his decision. "While previous presidents have made this a major campaign promise, they failed to deliver," he said.
Image: picture alliance/dpa/AP/E. Vucci
Arab world reacts with outrage
Following Trump's announcement, thousands of Muslims worldwide participated in demonstrations protesting his controversial decision. Protesters marched in the streets, burned flags and shouted anti-Israel slogans in countries including Iraq, Turkey, Egypt, Malaysia, Indonesia and Indian-controlled Kashmir.
Image: Getty Images/AFP/A. Gharabli
Protests break out in Europe
The protests soon reached Europe. In Germany, on December 8, 2017, mostly Muslim demonstrators attended a rally near the US embassy at Berlin's Brandenburg Gate, waving Palestinian flags. The German government was among those warning against Trump's move.
Image: Getty Images/S. Gallup
UN rejects Trump's Jerusalem declaration
On December 21, 2017, an emergency session of the United Nations General Assembly passed a resolution condemning US President Donald Trump's decision to name Jerusalem as the capital of Israel. A total of 128 countries voted in favor of the measure, while nine voted against it and 35 countries abstained. The vote came after the US vetoed a UN Security Council resolution on Jerusalem.
Image: picture alliance/dpa/AP/M. Lennihan
US doubles down on Jerusalem embassy promise
On February 23, the US State Department said it would hasten the relocation of the embassy to Jerusalem. "The opening will coincide with Israel's 70th anniversary," State Department spokeswoman Heather Nauert said. The anniversary falls on May 14. During a visit to Jerusalem in January, US Vice President Mike Pence had said he did not expect the move to be complete before the end of 2019.
Image: Reuters/A. Schalit
First road signs for new US embassy go up
On May 7, Israeli authorities put up the first road signs pointing to the US embassy in Jerusalem. The signs were put up on the southern side of the city by the US consulate. Jerusalem Mayor Nir Barkat hung the first sign. In a statement, he said: "This is not a dream, it's reality. Jerusalem is the eternal capital of the Jewish people, and the world is beginning to recognize this fact."