US President Donald Trump has dropped decades of US policy insisting on a two-state solution to the Israeli-Palestinian conflict.
At a news conference with Israeli PM Benjamin Netanyahu, Mr Trump promised to deliver a “great” peace deal, but said both sides must compromise.
The Israelis and Palestinians have had no substantive peace talks since 2014.
In the conference, Mr Trump also asked his visitor to “hold back” on settlement building for “a little bit”.
Israel has approved thousands of new homes in West Bank and East Jerusalem settlements since Mr Trump took office last month.
The Israeli government is hoping for better relations with the White House after eight years of friction with the former Obama administration.
At Wednesday’s press conference, neither leader committed explicitly to back a future independent Palestine, a longstanding bedrock of US policy.