Mr Trumpsaid the story is another one the news media has gotten wrong.
Trump has repeatedly underscored USA support for Israel during his first global trip as president. But news accounts have not accused Trump of naming Israel as a source of the information. Last month, he visited the U.S. Holocaust Museum and described how "six million Jews had been brutally slaughtered" in a proclamation marking the weeklong Days of Remembrance of Victims of the Holocaust.
During his visit to Saudi Arabia on Sunday, Trump called on the regional countries to isolate Iran which he said, had "fuelled the fires of sectarian conflict and terror".
The US president flew to Israel yesterday after a two-day stay in Saudi Arabia, which he chose for his first foreign trip since taking office in January.
In a jibe at the billion-dollar deals signed by Mr Trump and the Saudi government, he said: "You can't solve terrorism just by giving your people's money to a superpower".
Mr Rouhani stressed that it was Syrians, Iraqis, Iranians and members of Lebanon's Hezbollah movement who had been fighting terrorists in the Middle East in recent years, and accused the U.S. and its allies of funding terrorists. Still, White House officials had downplayed the prospects for a breakthrough on this trip, saying it was important to manage their ambitions as they wade into terrain that has tripped up more experienced diplomats.
Aides said the approach was purposeful, and the normally free-wheeling Trump was well-aware of the risks of veering off script on issue where every word is intensely scrutinized. "It will leave an impression on me forever".
"The problem is that the Americans do not know our region and those who advise United States officials are misleading them".
USA policy doesn't hold that the city is part of Israel, but the White House put "Jerusalem, Israel", on its website Monday, without offering an explanation. He toured the Church of the Holy Sepulchre, which by Christian tradition is where Jesus was crucified and the location of his tomb. Tillerson referred to the visit as "a moment in time" and suggested that the US would take a more active role in the future in brokering a deal if both sides make serious commitments. More than 20 people were killed by an apparent suicide bomber.
"We're having very good discussions with all parties and as long as we see that happening, then we don't intend to do anything that we think could upset those discussions", the official said. Once he steps outside the country, the original campaign slogan must morph into something like "America First in the World"-and we know that Trump is a strong believer in being the best".
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Trump is scheduled to leave Saudi Arabia, home to Mecca, the holiest site in Islam, early Monday to head to Israel.
His flight from Riyadh to Tel Aviv on Monday marked a rare direct flight between Saudi Arabia and Israel, and was the first by an American president. He met multiple times with Netanyahu and said in a joint appearance with the prime minister Tuesday, "I can tell you that the Palestinians are ready to reach for peace - and, from my meeting with my friend Benjamin Netanyahu, I can tell you Israelis are ready to reach for peace as well".
Iranian President Hassan Rouhani speaks during a joint news conference following a meeting with Russian President Vladimir Putin at the Kremlin in Moscow, Russia March 28, 2017.