East Jerusalem, one of the most contentious subjects in the conflict between Israelis and Palestinians, was not part of the original lines drawn for Israel.
But Palestinian President Mahmoud Abbas, in some of his sharpest rhetoric since Trump's announcement, reiterated in public comments to senior Palestinian officials Monday that he will no longer accept the U.S.as a Mideast mediator.
"It's only in a peaceful situation that the chances of peace will be maximized", he said.
Egypt put forward the draft resolution which insists that Jerusalem is an issue "to be resolved through negotiations" between Israel and the Palestinians and expresses "deep regret at recent decisions concerning the status of Jerusalem", without specifically mentioning Trump's move. In 1967 during the six day war under Israeli control moved East Jerusalem.
With all the other 14 members of the Council, including its allies Britain and France, lining up against the US, Permanent Representative Nikki Haley cast the veto-powered negative vote killing the resolution on Monday.
The last time the USA had vetoed a resolution was in 2011 when it voted against a motion condemning the building of Israeli settlements in Jerusalem and the occupied territories.
Palestinians want East Jerusalem as the capital of a future state, and Palestinian President Mahmoud Abbas said last week that his side will no longer accept a US role in the peace process.
Introducing the resolution, Egypt's Permanent Representative Amr Abdellatif Aboulatta said that the USA decision violated Council resolutions on the status of territories occupied by Israel and also the UN Charter which prohibits annexation of territories.
Under a 1950 resolution, an emergency special session can be called for the General Assembly to consider a matter "with a view to making appropriate recommendations to members for collective measures" if the Security Council fails to act.
Russia's deputy United Nations ambassador, Vladimir Safronkov, said the issue of "moving as quickly as possible toward direct Israeli-Palestinian negotiations" is becoming more important, and he reiterated Russia's proposal to hold a summit between the Palestinian and Israeli leaders.
It also called on all parties not to establish diplomatic missions in Jerusalem. And it would have called for intensified and accelerated global and regional efforts to achieve Middle East peace.
Last week it was reported that Salam, like many other Islamic political and religious leaders, was so upset with Trump's decision to recognize Jerusalem as the capital of Israel that he canceled the town's Christmas market and festival.
Indeed, our president is letting the world know - including the anti-Semitic United Nations cesspool in Manhattan - that their historical Jew hatred will not be tolerated and that politics-as-usual will take a back seat to the enduring truths of the Bible, in which the God of Abraham, Isaac and Jacob mandated that their inheritance of the land of Israel is totally immutable.
Israeli Prime Minister Benjamin Netanyahu thanked the USA for using its veto in a video posted to Facebook.
Netanyahu added that the Jewish people will be "forever grateful" to the USA for recognizing Jerusalem.