"We all know that".
"I also firmly believe that if Israel and the Palestinians can make peace, it can begin a process of peace all throughout the Middle East and that will be an awesome accomplishment".
He, however, offered no specifics on how he planned to make progress in resolving the conflict, with widespread scepticism over whether meaningful talks are possible for now.
Pundits and partisan political activists warned that Trump would undermine peace, seal the coffin on Palestinian rights and undermine Middle East stability, creating havoc that would fuel extremism.
Just before Trump's trip, Israeli Prime Minister Benjamin Netanyahu tried to ease down tensions with Palestinians for a while; while the president of the Palestinian Liberation Organization (PLO) Mahmoud Abbas intensified his pressures on the Palestinians in the Gaza Strip for more than a month in a bid to court the American president.
"Making peace however will not be easy", Trump told an audience at the Israel Museum. Adding to this, he pointed out the sharp division between the peace-loving Muslim community and the perverted terrorist narrative, then followed with the compelling assertion: "Terrorists do not worship God, they worship death".
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Trump arrived at the presidential palace in the West Bank city, located only about a 20-minute drive from Tel Aviv but across Israel's controversial separation wall.
Trump earned a warm welcome from the Israelis and the Palestinians, and Israeli Prime Minister Benjamin Netanyahu made it clear during the trip that he preferred Trump to his predecessor, Barack Obama, whom he believed pressured Israel too much.
Israel claims Jerusalem as its capital, but Palestinians insist that the city's mostly Arab eastern part be the capital of any future state. In his speech in Riyadh, Saudi Arabia, Trump said, "Iran has fueled the fires of sectarian conflict and terror".
"I'm personally committed to helping Israelis and Palestinians achieve a peace agreement", Trump said.
For some time now, every time a new USA administration is elected, it pledges to "work with the parties concerned" to find a solution to the Israeli-Palestinian conflict.
Mr Abbas' Fatah party is at sharp odds with Islamist group Hamas, which is in power in the Palestinian enclave of Gaza, leaving no unified Palestinian position on peace. "So I do think there is a layer of truth here in that solving the "peace dilemma" may give regional actors the ability to advance their relationships with Israel".
Trump has repeatedly underscored US support for Israel during his first global trip as president.
"We stand in absolute solidarity with the people of the United Kingdom", Trump said. "We are ready. Everything is ready". There were lots of "firsts" in Trump's oversees trip to Israel, one of America's most trusted allies.