Trump said that his decision to sign a waiver against moving the US embassy in Israel to Jerusalem was intended to improve the chances of a Israeli-Palestinian peace deal.
"President Trump made this decision to maximize the chances of successfully negotiating a deal between Israel and the Palestinians, fulfilling his solemn obligation to defend America's national security interests," the White House said in a press release.
Trump had promised in the 2016 campaign to move the US embassy to Jerusalem as soon as possible. He further pledged that his administration would recognize Jerusalem as the undivided capital of Israel.
Israel declared Jerusalem its capital in 1949, but the international community largely recognizes East Jerusalem and the Old City to be part of Palestine.