The group says it holds the US "fully responsible" after recognizing Jerusalem as Israel's capital
The Organisation of Islamic Cooperation (OIC) is calling on other countries to recognise a Palestinian state with East Jerusalem as its capital.
The group has been meeting in Istanbul, Turkey in direct response to the decision by US President Donald Trump for his country to recognise Jerusalem as the capital city of Israel.
The OIC is the second largest inter-governmental organisation, after the United Nations, with 57 member states.
It is calling on the United States to revoke its decision, noting its "condemnation and rejection" of this decision.
In its final communiqué, the summit says it holds the US administration "fully responsible for any repercussions of it refusing to disavow this unlawful decision".
It claims this move is "a clear desertion by the US administration of its role as peace broker."
The group also wants OIC member states to impose political and economic restrictions on "states, officials, parliaments, companies and individuals recognising Israeli annexation".
The statement also calls on international actors to promote a multi-lateral political process, to resume an internationally sponsored, credible process to achieve lasting peace based on the two-state solution.
"The OIC calls again on those states that have not as yet recognized the state of Palestine to do so promptly such as to consolidate the foundations of the two-state solution, for justice and international legitimacy to prevail," OIC Secretary-General Dr Yousef Al-Othaimeen says.
The State of Palestine has bilateral recognition from 137 UN member states.
Many states extended the recognition following the declaration of independence by the Palestine National Council on November 15th, 1988.
Ireland has yet to recognise the State of Palestine.
The Dáil voted unanimously to recognise the state of Palestine in 2014, but this has not been enacted by Government.