US President Donald Trump has said Israeli settlements "complicate" the peace process with Palestinians and urged "care" over the issue.

He also told an Israeli newspaper that he did not believe the Palestinians, and possibly Israel as well, were ready to make peace.

President Trump angered Palestinians in December when he recognised Jerusalem as Israel's capital.

He also threatened to withhold aid unless Palestinians agreed to talks.

The US leader's latest comments came in an interview published on Sunday with the conservative newspaper Yisrael Hayom.

Asked by editor-in-chief Boaz Bismouth when the US would present its peace plan, Mr Trump said: "We will see what happens. Right now the Palestinians are not into making peace, they are just not into it. Regarding Israel, I am not certain it, too, is interested in making peace so we will just need to wait and see what happens."

On one hand, Trump is right in saying the settlements complicate the peace process and it does show Israel is not as serious about peace as they claim.

On the other hand, you really can't negotiate with terrorists and that's what the Palestinian areas are ran by. He told Rubio during the primaries that he does well with negotiating deals and Rubio tried to tell him the Palestinians are not one of this deals. I guess now he knows.

I do agree with his recognizing Jerusalem as the capital of Israel and with trying to push Palestinians to talk peace.