"We face a renewed opportunity with the support of President Trump", he said, a day after USA envoys Jared Kushner and Jason Greenblatt left the region after meetings with Israeli and Palestinian leaders, without reaching any proclaimed results.
After two decades of failed USA -led peace efforts, Palestinian statehood seems distant.
Netanyahu has in the past given conditional backing to two states.
He accompanied Trump during his one-day visit to Israel and the Palestinian areas last month.
The Palestinians, meanwhile, have rejected Netanyahu's demands to recognize Israel's Jewish identity.
Sheikh Azzam al-Khatib, director of the Jerusalem office of the Islamic Waqf, condemned the Israeli measures and entry restrictions on Palestinian worshipers from the West Bank.
He said that Abbas is "pressuring Hamas in Gaza in order to drag it into a war with Israel".
For decades, Republican and Democratic presidents have repeatedly failed at reaching what Trump calls "the ultimate deal". "[President Donald] Trump isn't reliable, but he has a greater chance of getting Israel to take risks for peace because of his embrace and support".
But the Trump administration enjoys some advantages that could help. The global community also widely opposes the settlements. Kushner's family has a long relationship with Netanyahu.
But during a February meeting with Mr Netanyahu in Washington DC, Mr Trump declared that he was not fixed on two states saying, "I'm looking at two-state and one-state, and I like the one that both parties like".
There is also the fear factor. At the same time, it is understood that the United States does not want to impose preconditions that would prevent a resumption of substantive peace efforts.
But he has given hints of what he has in mind. He said the Americans "are buying" Netanyahu's complaints about Palestinian incitement, and that Greenblatt was insisting on an end to the welfare payments.
"This is the way Netanyahu is meeting Trump's envoys", said Mustafa Barghouti, a Palestinian official. "Because it's good for them here", he said, referring to Palestinian citizens of Israel, making up approximately 20 percent of the population, whose families lived on the lands of historic Palestine before the creation of the state of Israel.
But the officials, speaking on condition of anonymity because they were discussing a confidential diplomatic matter, stressed the situation is fluid.
Even before his meetings, Kushner faced a new crisis.
Success would require creativity and likely a system of incentives and disincentives to push the sides toward compromise.
The expansion of illegal settlements has been a major hurdle in the way of the so-called peace talks, which opened between Israel and the Palestinian Authority under the Oslo Accord in 1993.
"If you look at the issues, they are the same - borders, Jerusalem, the refugees, settlements", Foxman told The Algemeiner.