The United States opened its Jerusalem embassy in the southern Jerusalem's Arnona neighborhood on Monday.
Guatemala is now the second country to move its Israeli embassy back to Jerusalem.
Guatemalan President Jimmy Morales dedicated the embassy just two days after a high-powered American delegation marked the transfer of the U.S. Embassy.
US Secretary of the Treasury Steven Munchin, left, and daughter of US President Donald Trump, Senior Adviser Ivanka Trump, unveil a dedication plaque during the official opening ceremony of the US embassy in Jerusalem on May 14, 2018.
The White House declined to join in urging Israel to exercise caution and pinned the blame squarely on Gaza's ruling Hamas group, backing Prime Minister Benjamin Netanyahu who described the Israeli military's actions as self-defense of his country's borders.
The embassy openings have been strongly opposed by the Palestinians and much of the worldwide community.
Trump says recognizing Jerusalem as Israel's capital acknowledges the reality that Israel's government is located there as well as the ancient Jewish connection to the city.
"We remember our friends, and Guatemala is our friend - then and now", Netanyahu said.
Countries which had embassies in Jerusalem relocated to Tel Aviv after Israel passed a law in 1980 formally making Jerusalem its capital.
In December, President Donald Trump announced he would move the US embassy in Israel from Tel Aviv to Jerusalem and that he would recognize Jerusalem as the capital of the country.
So far, Paraguay is the only other country to announce it will open an embassy in Jerusalem, though a number of Latin American and Central European countries have indicated they may follow suit.
Israel regards all of the city, including the eastern sector it captured in the 1967 Middle East war and annexed in a move that is not recognized internationally, as its "eternal and indivisible capital". Leaders in the European Union and the United Nations urged Israel to refrain from using deadly force. "You deserve a better future", the leaflets said.
At 10.30 am this morning, Guatemala officially opened its new, unfinished embassy in Jerusalem. But the embassy move has sent a firm message that the USA believes the controversial holy city rightfully belongs to Israel.