United States wields its United Nations veto over status of Jerusalem Israel considers Jerusalem its eternal and indivisible capital and wants all embassies based there Resolution expressed "deep regret at recent decisions concerning the status of Jerusalem".
The Egypt-sponsored resolution, which avoided naming the USA or Trump directly, sought to express "deep regret at recent decisions concerning the status of Jerusalem" and asked other countries not to follow suit and move their embassies to a city considered holy by Jews, Christians and Muslims.
Trump shattered decades of unwavering US neutrality on Jerusalem on December 6 when he declared that the United States recognizes the divided holy city as Israel's capital and will move its embassy there. The vote has underlined once again the widespread worldwide opposition to the USA move, even among some of its closest allies.
The US and the worldwide community have long maintained that the solution to the Middle East conflict would be the formation of a Palestinian state - alongside the Israeli one - with East Jerusalem as its capital.
The draft resolution was circulated among UN Security Council members last week.
The United States was certain to veto the Egyptian-sponsored resolution, but its Arab supporters wanted the vote to demonstrate that countries everywhere and even many USA allies such as Britain, France and Japan are against Trump's action.
Moscow's deputy United Nations envoy Vladimir Safronkov said Russian Federation is ready to hold direct talks between the two sides - effectively replacing the U.S. - and insisted that it is important to move "as quickly as possible towards direct Israeli-Palestinian negotiations".
Israeli Prime Minister Benjamin Netanyahu immediately thanked Haley for her stance. "It won't be forgotten", - US Ambassador to the UN Nikki Haley said after the vote. "It should be an embarrassment to the remainder of the Security Council".
It came ahead of a planned trip by the US vice-president, Mike Pence, to Jerusalem on Wednesday that was set to take place amid a deep rupture in U.S.
As the Russian diplomat called on all parties involved to "show restraint" he said: "We are ready to become an honest mediator here", making thinly veiled remarks that the US' steps are favouring Israel.
The resolution that was vetoed would have called on "all states to refrain from the establishment of diplomatic missions in the holy city of Jerusalem", citing a 1980 council resolution.
The rare use of the USA veto to block the vote was not an embarrassment, Haley said, but should embarrass the other council members.
The resolution also called for reversing the "negative trends on the ground that are imperilling the two-State solution" for Arab-Israeli dispute.
A communique issued after the summit said the participants considered the move to be a declaration that Washington was withdrawing from its role "as sponsor of peace" in the Middle East.
He said Haley "lit a candle of truth" and dispelled "lies".