Trump had vowed during his presidential campaign that he would move the US Embassy to Jerusalem al-Quds, a step that would enrage Palestinians and create an global furor. The waiver Trump signed delays the relocation, which was approved in 1995 by Congress, for another six months.
The White House framed the decision to delay the move as a necessary step to secure an Israeli-Palestinian peace deal. The Palestinians claim east Jerusalem as the capital of their future state, while Israel has declared the entire city as its capital.
The White House said Trump "made this decision to maximise the chances of successfully negotiating a deal between Israel and the Palestinians".
On the campaign trail, Mr Trump repeatedly pledged that he would move the embassy from Tel Aviv to the city claimed as capital by both Israel and its Palestinian neighbours, and he appointed a United States ambassador who shares this goal. He has since, however, stalled on his pledge.
Abdullah in particular expressed deep concern that moving the U.S. Embassy would spark unrest among his country's large Palestinian population. We value [Trump's] commitment to Palestinian-Israeli peace.
"This is in line with the long held US policy and the global consensus and it gives peace a chance", Zomlot said.
It may be a little hard to defend this change for Trump, who openly criticized past presidents of both parties for waivers and campaigned on being a non-politician who keeps his promises.
Although Trump signed a waiver, he could still move the embassy after six months, or issue an executive order overriding the waiver before it expires.
On Wednesday, Trump signed a six-month waiver that will maintain the American embassy in Tel Aviv, aides confirmed to The New York Times Thursday.
When Palestinian Authority President Mahmoud Abbas visited at the beginning of May, Trump did not answer a question from the press pool about moving the embassy. Palestinians want East Jerusalem to be the capital of an independent state. "Every president since the bill became law - Bill Clinton, George W. Bush, Barack Obama and now Trump - all signed waivers". The king warned that relocating the embassy might anger Arabs, hurting any chances of striking a deal between Israel and Palestine.
In the 1940s, the United Nations proposed the worldwide community oversee Jerusalem since the city is so important to three major religions.
After getting into the Oval Office, Trump said he'd study the issue.