WASHINGTON — Saying that “old challenges demand new approaches,” President Donald Trump announced Wednesday that the United States will recognize Jerusalem as the capital of Israel and will begin a process to transfer the U.S. Embassy to the ancient city, reversing decades of American policy and defying widespread international criticism.

“Today we finally acknowledge the obvious: that Jerusalem is Israel’s capital,” Trump declared in a speech at the White House. “This is nothing more or less than a recognition of reality. It is also the right thing to do.”

Trump acknowledged that his announcement, which he followed with a signed proclamation, would generate “disagreement and dissent.” It sparked protests in Palestinian territories and a fresh round of denunciations in foreign capitals worried about a new outbreak of violence in the volatile region.

But Trump said his administration would not follow the “failed policies of the past.” And he took a swipe at previous presidents who failed to officially recognize Jerusalem or move the embassy. “Some say they lacked courage, but they made their best judgments based on facts as they understood them at the time,” he said. “Nevertheless, the record is in. After more than two decades … we are no closer to a lasting peace agreement between Israel and the Palestinians. And it would be folly to assume that repeating the exact same formula would now produce a different or better result.”

Israelis and Palestinians both claim Jerusalem as their capital, and until now, neither claim was widely recognized. Instead, the international consensus, backed by United Nations resolutions and previous U.S. presidents, was to negotiate the city’s status as part of a peace deal to resolve the Israeli-Palestinian conflict.

No other country has established an embassy in Jerusalem, and the White House said it would take several years to select a site and build the facility. But Trump’s 11-minute speech fulfilled a core campaign pledge, one crucial to some conservative Jews and evangelical Christians in his base who believe the U.S. must do more to support Israel.

Trump insisted that his decision would not derail his administration’s so-far unsuccessful efforts to restart long-stalled Israeli-Palestinian peace talks.

Trump said he is not taking a position of any final status issues, including the specific boundaries of Israeli sovereignty in Jerusalem, or resolution of contested borders, for any future negotiations. He also said he would “support a two-state solution if agreed to by both sides,” the long-sought formula for a peace deal.

Many Israelis were ecstatic, praising Trump for recognizing the reality on the ground. The government of Israel has controlled all of Jerusalem since the 1967 war, and its parliament, Supreme Court and most government departments are based there. But Palestinians, who claim east Jerusalem as the capital of their eventual independent state, were furious, as were U.S. allies throughout Europe and the Arab world.

Heads and patriarchs of Christian churches in Jerusalem also bemoaned the decision. They represent various branches of the Christian faith, including Greek, Syrian and Armenian Orthodox churches; Episcopalians; Roman Catholics; and Lutherans. “We are certain that such steps will yield increased hatred, conflict, violence and suffering in Jerusalem and the Holy Land,” the 13 leaders said in a letter to Trump.

Many Middle East experts in Washington were also dismayed by Trump’s plan to change U.S. recognition of a city revered as holy by all three monotheistic faiths: Judaism, Islam and Christianity. “There is no upside to this. What does he gain?” asked Daniel Kurtzer, U.S. ambassador to Israel under President George W. Bush. “And for them to say this could jump-start the peace process, it shows they don’t have a clue about peace” in the Middle East.

Martin Indyk, who served twice as U.S. ambassador to Israel and was a special Middle East envoy under President Barack Obama, said on CNN that Trump’s decision to declare Jerusalem the capital but delay moving the embassy was “an attempt to have it both ways.”

Scattered violence was reported early Wednesday in Palestinian territories, including the burning of U.S. and Israeli flags in the Gaza Strip. U.S. embassies and consulates throughout the region were put on alert in anticipation of potential protests.

Palestinians declared “three days of rage,” pegged to peak after Friday prayers.

Several world leaders argued that the move makes plain U.S. bias in favor of Israel and the hard-right government of Prime Minister Benjamin Netanyahu, who has offered fulsome praise for Trump. Previous U.S. administrations have cast themselves as honest brokers in the Middle East, toiling endlessly to resolve one of history’s most intractable conflicts. The appearance now, at least in the Arab world, is that Trump has taken one side.

In another Mideast move, Trump on Wednesday called on Saudi Arabia to end its Yemen blockade immediately, citing humanitarian concerns.

“I have directed officials in my Administration to call the leadership of the Kingdom of Saudi Arabia to request that they completely allow food, fuel, water, and medicine to reach the Yemeni people who desperately need it,” Trump said in a statement.

A Saudi-led coalition has been fighting to defeat the Iran-backed Houthis since March 2015.

Staff writer Noah Bierman and Associated Press contributed.

tracy.wilkinson@latimes.com