Speaking alongside Prime Minister Benjamin Netanyahu at the World Economic Forum in Davos on Thursday, U.S. President Donald Trump dramatically changed the rules of the decadeslong Israeli Palestinian peace process, saying that "we took Jerusalem off the table."
At a press conference ahead of the bilateral meeting on the sidelines of the conference, Trump placed the full responsibility for restarting the peace talks on the Palestinians.
Breaking from his previous assertion that his Dec. 6 recognition of Jerusalem as the capital of Israel did not indicate that he had taken a stance on the future of Jerusalem in negotiations, Trump said that "there were never any deals that came close because [of] Jerusalem. You couldn't ever get past Jerusalem. So when people said, oh, I 'set it back' – I didn't set it back. I helped it. Because by taking it off the table, that was the toughest issue. And Israel will pay for that."
"It's great to be with Prime Minister Netanyahu," Trump began. "We've developed a great relationship, both as countries where I think it's never been stronger – and I can honestly say that – and also, as personal friends."
Touching on his "big" and "historic" pledge to relocate the U.S. embassy in Israel from Tel Aviv to Jerusalem as part of the official recognition of the Israeli capital, Trump went on to say that it was "way ahead of schedule, by years, and we anticipate having a small version of it opened sometime next year."
Trump has yet to unveil his plan for the peace process, one he has touted in the past as the "ultimate deal." When asked whether a plan was forthcoming, he replied: "Yes, we have a proposal for peace. It's a great proposal for the Palestinians. I think it's a very good proposal for Israel. It covers a lot of the things that were over the years discussed and agreed on."
Trump then admonished the Palestinians for boycotting U.S. Vice President Mike Pence, who visited the region this week and reiterated his threat that he would withhold aid from them unless they return to the negotiating table.
"I spoke to some of the people involved, and I said did you ever talk about the vast amount of money that we give to the Palestinians? Because it is hundreds of millions of dollars," Trump said. "When they disrespected us a week ago by not allowing our great vice president to see them, and we give them hundreds of millions of dollars in aid and support, tremendous numbers, numbers that nobody understands. That money's on the table. That money's not going to them unless they sit down and negotiate peace."
He added, however, that "I don't know that it [peace talks] will ever take place," stressing that Israel wants "to make peace, and I hope the Palestinians want to make peace. And if they do, everybody is going to be very happy in the end. We'll see what happens."
Addressing Trump directly, Netanyahu said, "This is the first meeting we've had since your historic decision to recognize Jerusalem as Israel's capital and to move the embassy, and now to expedite the movement of the embassy, to Jerusalem."
"I want to say that this is a historic decision that will be forever etched in the hearts of our people for generations to come. People say that this pushes peace backward. I say it pushes peace forward because it recognizes history, it recognizes the present reality, and peace can only be built on the basis of truth," Netanyahu said.
Netanyahu also stressed that Israel supports Trump "completely in your stalwart position on the Iran nuclear deal," referring to the nuclear agreement reached between Iran and world powers in 2015 that aimed to curb Iran's nuclear aspirations in exchange for lifting crippling sanctions.
"You've said it's a disastrous deal. You've said that if its fatal flaws are not fixed, that you should walk away from it. And I want you to know that if you decide to do that, then we will back you all the way," he said.
After the conclusion of the meeting, Netanyahu said he was "fully convinced that the United States backs Israel's opposition to Iranian military entrenchment in Syria, with the explicit goal that Iran doesn't hide of trying to destroy Israel from Syria."
"The President [Trump] couldn't have been more explicit in his support for our right of self-defense," Netanyahu said.
Netanyahu said the Iranian nuclear deal was "flawed", and is creating an opportunity for Iran to "produce an arsenal of nuclear weapons" that would fuel Iran's aggression, which he said, should be stopped by all leaders.
Iran says its nuclear program is only for peaceful purposes and that it will stick to the accord as long as world powers respect it, but will "shred" the deal if Washington pulls out.
Regarding the halted peace process, Netanyahu said, "Yes, I'm ready for peace. I explained that to President Trump. I reaffirmed my willingness and Israel's willingness to engage in an effort to achieve peace with the Palestinians – an effort that is being advanced by his very able team. We are interested in pursuing it."
Netanyahu also said that, together with the support of U.S. President Trump, he is willing to "engage in an effort to achieve peace with Palestinians."
Meanwhile, Thursday, Palestinian chief negotiator Saeb Erekat condemned Trump's comments.
"Saying that Jerusalem is off the negotiating table translates into saying that peace is off the negotiating table," Erekat said. "This is very disrespectful to the international community, very disrespectful to international law, this is just rewarding the Israeli aggression and occupation, and throwing this region down a path of chaos and loneliness and bloodshed. This must stop."
"What Palestinians and Israelis need," he went on to say, "they need a meaningful peace process that would lead to the two-state solution, the state of Palestine with east Jerusalem as its capital to live side by side in peace and security with the State of Israel on the 1967 rights. Anything else would be to throw Palestinians and Israelis deeper and deeper into this cycle of violence and counter-violence."