Trump says 'ultimate deal' possible for peace in Middle East

He added that in his meeting with Palestinian President Mahmoud Abbas it was clear that "the Palestinians are ready to reach for peace", and that Israeli Prime Minister Benjamin Netanyahu "wants peace".

"You noted so succinctly that common dangers are turning former enemies into partners, and that is where we see something new and potentially very promising", Netanyahu told Trump at the time, thanking him for becoming the first sitting American president to visit the Western Wall. They're losers. And we'll have more of them.

The report quotes a Palestinian official who said that Trump has not abandoned the two-state peace plan, but he does seek to explore other possible venues, including a broad Middle East peace plan and another interim agreement negotiated between Israel and the Palestinians. The status of Jerusalem is ultra-sensitive and has been among the most hard issues in Israeli-Palestinian peace talks, stalled since April 2014.

Mr Abbas said he welcomed Mr Trump's efforts, which had "given all the nations across the region so much hope and optimism of the possibility of making a dream come true".

"The problem is not between us and Judaism, it is between us and occupation", the Palestinian leader asserted.

Since Trump took office last month, Israel has announced plans to build over 6,000 settler homes in the West Bank and east Jerusalem - occupied territories claimed by the Palestinians.

"I extend my deepest condolences to those so terribly injured in this terrorist attack, and to the many killed and the families, so many families of the victims", Trump said. In Bethlehem Mr Trump lectured President Abbas that "peace can never take root in an environment where violence is tolerated, funded and even rewarded".

On Monday, Trump made a highly symbolic visit to the Western Wall in Jerusalem and met Israeli Prime Minister Benjamin Netanyahu.

It is unclear if the "pressure" exerted by Trump would resonate with Israeli leaders.

"Our Palestinian people's attainment of their freedom and independence is key to peace and stability in the world", said the 82-year-old Mr. Abbas, whose popularity among Palestinians has been declining.

His visit to Palestine included delivering remarks in front of a backdrop of Palestinian flags, but Trump didn't mention a two-state solution, as has been mentioned in the past. "It's between us and occupation", Abbas said.

Let's get this out of the way first: Israel and Saudi Arabia are both in the Middle East.

"Trump's proposed formula for peace did not rest on the traditional mindset of a two states for two people, based on 1967 borders with or without land swaps", he told reporters in a conference call on Tuesday. Trump is due to meet Pope Francis on Wednesday, becoming the 13th president to visit the Vatican.

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