The Palestinians angrily rejected Trump's plan, which would allow Israel to annex all its settlements in the West Bank while giving the Palestinians limited self-rule over the Gaza Strip, chunks of the West Bank and other far-flung areas.
President Mahmoud Abbas, who is traveling to Cairo this week for meetings at the Arab League, appears determined to shore up worldwide support.
"I have done a lot for Israel", Trump said.
"It is meant to help Prime Minister Netanyahu survive his current political and legal struggles as well as to shore up support for President Trump among pro-Israel voters in his re-election campaign", said Michele Dunne, a former State Department specialist on the Middle East now at the Carnegie Endowment for International Peace.
The plan says this can only happen when the Palestinian wholly accept Israel's new borders, disarm completely, remove Hamas from power in Gaza and agree to Israeli security oversight on all of its territories until a point in the future when it deemed ripe for withdrawal.
The plan covers strict conditions, including a requirement that the future Palestinian state be demilitarized.
The plan put forth by Trump is the most generous and detailed proposal ever offered to Israel, and is a hit among Netanyahu's right-wing base as well as Trump's evangelical Christian supporters in the United States. The proposal stipulates Jerusalem as the undivided capital of Israel and Palestine as an independent state. The Foreign Ministry branded Trump's plan "stillborn" and said it was aimed at "killing the two-state solution and stealing Palestinian lands". It says refugees can live in the state of Palestine, become citizens of the countries where they live or be absorbed by other countries, adding that the US will try to provide "some compensation" to refugees. Near the end of Barack Obama's presidency in 2016, the U.S. mission to the United Nations allowed the UN Security Council to condemn these Israeli settlements in "occupied territory" as a "flagrant violation" of global law. Trump hopes to rally Arab support it and says "many, many" countries "want this to happen", without naming them. That would leave Israel responsible for the complicated and expensive task of providing basic services to hundreds of thousands of Palestinians in the West Bank.
The US has signaled that it is happy for Israel's annexation to begin at any time.
"The peace plan is consistent with the fundamental principles outlined in the Blue and White's platform".
The plan stipulates that "Israel will retain security control in the entire area west of the Jordan River. giving Israel a permanent eastern border to defend ourselves", Netanyahu said. Under our vision, no Israelis or Palestinians will be uprooted from their homes or denied their civil rights.
Going forward, the perception of the global community will be key. "Next week, I will bring the entirety of President Trump's peace plan, as unveiled yesterday, to the Knesset for approval", Gantz added.
"Total rejection could undermine what modest hopes for two-state outcome exist and pave way to annexations".
The backdrop: Netanyahu is fighting for his political life and seemed to relish the opportunity to stand alongside Trump at the press conference and follow him at the podium.
It is a two state solution.
"It gives Jerusalem, but not actually Jerusalem; it gives territorial contiguity but not actually territorial contiguity; it gives Gaza but not actually Gaza", he said.