During the interview, Trump said that both Israel and the Palestinian Authority "will have to make hard compromises to reach a peace agreement". "Right now, I would say the Palestinians are not looking to make peace". He said that the Palestinians "are not interested in making peace" and that he was not sure the Israelis were either. Just two weeks ago, Trump's Middle East envoy Jason Greenblatt told European Union ambassadors that the president does not consider Israeli settlements to be an obstacle to peace.
Trump is quite correct in saying his relationship with Israel is generally strong, and his relationship with the Palestinians isn't good, but stating the obvious, that Israel's commitment to the peace process is shaky, at best, challenges Israel's worldwide narrative that they are inherently peaceful and their constant warring and occupation is everyone else's fault.
Trump warned Netanyahu's goverment against Israeli settlements getting in the way of negotiations.
"The settlements", he told Israel Hayom editor-in-chief Boaz Bismuth, "are something that very much complicate and always have complicated making peace, so I think Israel has to be very careful with the settlements".
Malaysia had strongly protested the decision and voted, along with 127 other countries, at the United Nations general assembly last December in favour of a resolution rejecting US' recognition of Jerusalem as Israel's capital, but USA ambassador Kamala Shirin Lakhdir was quoted by Sunday Star as saying cooperation between Malaysia and the U.S. were "ongoing".
Last month multiple media outlets reported that Israeli Prime Minister Benjamin Netanyahu expected Trump's administration to move the US embassy into Jerusalem by the end of 2018.
President Trump angered Palestinians in December when he recognised Jerusalem as Israel's capital.
Palestinians regard Jerusalem as the capital of their future state.
"We are going to see what goes on", Trump told the Israel Hayom daily in an interview released on Sunday. Modi then toured the Arafat museum, which is also part of the compound, before holding talks with Abbas. Since then he has cut USA funding to a United Nations agency that assists Palestinian refugees and threatened to withhold aid money to the Palestinians unless they resume negotiations with Israel.
The Palestinian Authority president, Mahmoud Abbas, has said that he will no longer accept the U.S. as a mediator following the move.
The legal status of Jerusalem is still contested even though Israel's government mainly operates out of the city.
Donald Trump has threatened to cut aid to countries that voted against Washington's move to recognise Jerusalem as Israel's capital. "When I think of the likely consequences I think this is more ambivalent", Gabriel said.
"I would say I understood that was going to be their decision".