At talks with Mahmoud Abbas, he spoke of being gratified that the Palestinian leader had committed to taking necessary steps to "fight terrorism".
Israel and the Palestinians have not held peace talks for three years and Mr Trump acknowledges it would be "one of the toughest deals of all" to broker.
This is the last day of the US president's visit to the Middle East.
In both Gaza and the occupied West Bank, Palestinians have held protests against the trip and in support of a hunger strike by Palestinian prisoners in Israeli jails.
