The President of Turkey, Recep Tayyip Erdogan, insisted America had “lost its mediator role in the Middle East peace process” following the move from the Republican firebrand.
Erdogan said: "With its latest step, America has chosen to be a part of the problem, not a solution and lost its mediator role in the Middle East peace process.”
The leader added the embassy move from Tel Aviv was "very, very unfortunate" as he starkly warned of an increase in tensions and the possibility of igniting an “even greater fire between communities".
Trump's recognition Jerusalem as Israel's capital in December outraged Palestinians.
Palestinians want East Jerusalem as the capital of a state they want to establish in the occupied West Bank and the Gaza Strip.
Israel regards all of the city, including the eastern sector it captured and annexed in the 1967 Middle East war, as its "eternal and indivisible capital" in a move that has not won international recognition.
Turkey pointed the finger at Mr Trump’s decision to move the US’ embassy in Israel for the increased tensions that flared up on Monday.
Ankara blamed the White House for the “massacre” in Gaza that saw at least 52 Palestinians killed and hundreds injured after a protest against the decision ended in violence.
Ankara’ Foreign Ministry commented: “We curse the massacre carried out by Israeli security forces, encouraged by this step, on the Palestinians participating in peaceful demonstrations.”
Binali Yildirim, the Prime Minister of Turkey, blasted US arrogance for the “crime against humanity”.
He explained: “Unfortunately, the US has arrogantly stood by the Israeli administration which kills civilians and has partnered in this crime against humanity.
"This provocation will only worsen the problems in the region and cause a deeper mark in the Israeli-Palestinian relationship, and will make peace in the region more difficult."
Mr Erdogan continued to blast the actions of the US President by insisting the Iran nuclear deal should be “preserved”.
He went on: "The nuclear deal is a significant development which should be preserved.”
The Ankara leader emphasised that political dialogue with Tehran was “beneficial” to countries across the globe.
Mr Erdogan made the comments during his three-day visit to the UK - he is set to meet with Theresa May today.
Discussions between the two leaders are part of "an opportunity for the UK and Turkey to build on our close cooperation on counter-terrorism, migration, regional stability and in other vital areas”, according to a spokesman for the Prime Minister.
The spokesman added: "Our close relationship with Turkey allows us to have frank discussions and you can expect the prime minister will raise human rights.
"We want Turkey to uphold its international obligations, including respect for freedom of expression and political freedoms."
The Turkish leader will also meet with the Queen on Tuesday.