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Watch Trump and Netanyahu's awkward exchange about Israeli settlements

President Donald Trump vowed to make a "really great peace deal" in the Middle East when addressing the press alongside Israeli Prime Minister Benjamin Netanyahu on Wednesday. "It is the parties themselves who must directly negotiate the agreement," Trump said, adding to Netanyahu: "Both sides will have to make compromises. You know that?"

When asked about his solution to the Israel-Palestine conflict, Trump added, "I'm looking at two state and one state. And I like the one that both parties like."

As for Israeli settlements, Trump looked at Netanyahu and said: "I'd like to see you hold off on settlements for a little bit ... We'll work something out ... It might be a bigger and better deal than people in this room even understand." Netanyahu replied, "Let's try," and Trump noted "that [Netanyahu] doesn't sound too optimistic."

"That's the art of the deal," Netanyahu quipped, quoting the title of Trump's most famous book.

But, Trump assured, "I really believe they want to make a deal."