The article addresses the legality of the relocation of the United States embassy from Tel Aviv to Jerusalem in light of the duty of non-recognition and the international consensus on the two-state solution. Analysing the massive reaction of states to the United States administration’s decision, the article takes stock of the practice on the status of Jerusalem and on the Israeli-Palestinian issue more broadly. The authors conclude that the almost unanimous negative reaction of states and their commitment to the two-state solution will remain a dead letter if the solution to the crisis is left to a future bilateral agreement.