From Peace Now:
The recognition of Jerusalem as the capital of Israel, in the current context, is a unilateral step undermining the
chances for peace. The US has given up on its position as an honest broker that can help Israel and the Palestinian
achieve peace, and Israel has lost the best ally it could have for that role. Jerusalem is no more “united” after
the recognition and its status is as disputed as ever.
The only way to make Jerusalem universally recognized as the legitimate capital of Israel is through a two states agreement in which the Palestinians establish their own capital (Al-Quds) in east Jerusalem side by side with Israel’s Yerushalayim in west Jerusalem.