The President reinforced the message when he went on to have a meeting with Israeli Prime Minister Benjamin Netanyahu.
Trump, wearing a black skullcap, Monday became the first sitting president to visit the Western Wall.
On hand to hear the speech were former Arkansas Governor Mike Huckabee, pro-Israel GOP donor Sheldon Adelson, Rabbi Shmuley Boteach, and Israeli opposition leader Isaac Herzog. "These leaders voiced concerns we all share about ISIS, about Iran's rising ambitions and rolling back its gains and about the menace of extremism that has spread through too many parts of the Muslim world". But the new, less aggressive phrasing appears to be yet another way that President Trump differs from the candidate.
Solving the Mideast peace riddle is the task of Trump's son-in-law and jack-of-all-trades troubleshooter, Jared Kushner. There are no direct flights between the two countries and flights from either country bypass the other's airspace.
The Western Wall is the last remnant of the supporting wall of the second Jewish temple, built by King Herod and destroyed by the Romans in 70 AD. This wall is also referred to as the Wailing Wall, where Jews weep at the sight of the destruction of the temples.
In Gaza, a coastal territory around 60 km (35 miles) west of the West Bank that is under a land and sea blockade imposed by Israel and Egypt, demonstrations were expected later on Tuesday, following protests on Monday, to oppose Trump's visit to the region.
Trump arrived at the presidential palace in the West Bank city, located only about a 20-minute drive from Jerusalem but across Israel´s controversial separation wall.
Mr Trump added: "Our society can have no tolerance for this continuation of bloodshed".
The Palestinians, if an independent Palestinian state is created, want to claim east Jerusalem as their capital.
The traditional United States position has been that Jerusalem's status must be negotiated between the two sides.
The President's 9 day trip includes stops in Saudi Arabia and a trip to the Vatican to meet with the Pope.
Gill Hoffman: This trip is extremely important.
When he met Abbas this month in Washington, he stopped shortly of explicitly recommitting his administration to a two-state solution to the decades-old conflict, a long-standing foundation of USA policy.