Trump addressed the ceremony via a pre-recorded video, saying that the Jerusalem move had been a "long time coming".
"Israel is a sovereign nation with the right to determine its own capital, but for many years we failed to recognise the obvious."
He also said the US remained "committed to facilitating a lasting peace agreement".
Among those killed were a 12-year-old and a 14-year-old, according to Gaza's Health Ministry of health, who said scores more were injured.
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