Israel has begun construction of the first new settlement in the occupied West Bank in 25 years, with Prime Minister Benjamin Netanyahu calling it an "honour" to build the illegal outpost in defiance of global law.
Trump has called on Prime Minister Benjamin Netanyahu to hold back on settlement building as he seeks to build momentum.
Despite worldwide opposition to Israeli settlement construction, which is illegal under global law, ground was broken at the site of the proposed Amichai settlement, which is meant to accommodate settlers who the Israeli High Court evicted from the illegal Amona outpost earlier this year. He appears to have backtracked since.
Jared Kushner, the president's son-in-law and senior adviser, and Jason Greenblatt, his lead worldwide negotiator, will meet with leaders from both sides after accompanying Trump on his visit to the region last month.
But since taking office, Mr Trump has appeared to change his position.
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Days of Palestine reports that the reduction of power to the Gaza Strip has caused a "total collapse" in all the service sectors across the tiny coastal enclave, which has been under strict Israeli siege for 11 years.
Nickolay Mladenov stressed that the United Nations considers settlement activities illegal under worldwide law.
Peace activists in Israel release almost 200 lanterns near the Gaza strip.
More than 600,000 Israeli settlers now live in the occupied West Bank and East Jerusalem, alongside some 2.9 million Palestinians, which critics say makes a two-state agreement highly unlikely.
US mediated negotiations collapsed in 2014.
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Greenblatt is to be joined by Trump's son-in-law and adviser Jared Kushner on Wednesday.
Jason Greenblatt, Mr Trump's global envoy, arrived on Monday.
According to a senior-level White House official, Kushner and Greenblatt arrived in Israel this week in an attempt to advance the peace process with the Palestinians.
The worldwide community considers all Jewish settlements in the West Bank illegal but Israel draws a distinction between those it sanctions and those it does not - so-called outposts.
"The ambassador was also apprised of developments regarding the investigation, which began with the arrest of the [east Jerusalem man] who drove the terrorists to the site of the attack, as well as the arrest of one of the terrorist's mother [for helping them]".
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Palestinian sources said that ahead of Kushner's meeting with Abbas, they had been asked to draw up a list of 12 "bullet point" demands they would want met in any negotiations.