Trump's Middle East peace plan calls for two states, with Palestinian capital in east Jerusalem

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President Trump has called for a two-state solution in his Middle East peace plan, which he says would be the beneficial to both the Israelis and Palestinians.

calls for a state of Palestine with a capital in east Jerusalem, he said during an event Tuesday with Israeli Prime Minister Benjamin Netanyahu.

Palestinians have cited Trump policies such as moving the U.S. embassy to Jerusalem as evidence of pro-Israel bias that prevents the administration from being a neutral party in negotiations. Despite the deal's long odds of success, Trump suggested that the peace plan marked a historic step forward. The Israeli side welcomed the deal. Netanyahu, speaking alongside Trump, called the peace plan "exceptional" and a "realistic path to a durable peace."

The high-profile meeting between Trump and Netanyahu was seen as an effort to shore up Netanyahu's electoral prospects as he competes against rival Benny Gantz for reelection in a contest scheduled for early March. Gantz also met with Trump at the White House this week.

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