The relationship between Israel and Arab countries is becoming closer because of shared concern about Iran, US President Donald Trump has said during his visit to Israel.

Key points: Israel praises America's "shift in policy" with regards to Iranian threat

Israel praises America's "shift in policy" with regards to Iranian threat Mr Trump says defeating terrorism is an opportunity for Middle East cooperation

Mr Trump says defeating terrorism is an opportunity for Middle East cooperation Iran slams Mr Trump for promoting "Iranophobia"

Speaking in Jerusalem after talks with Israeli leaders on the first day of his two-day visit, Mr Trump doubled-down on Iran, pledging he would never let Tehran acquire nuclear arms and demanding Tehran immediately cease military and financial backing of "terrorists and militias".

"What's happened with Iran has brought many of the parts of the Middle East toward Israel," Mr Trump said at a meeting with President Reuven Rivlin.

In his comments to Prime Minister Benjamin Netanyahu, Mr Trump mentioned a growing Iranian influence in conflicts in Syria, Yemen and Iraq, where it either backs Shiite fighters or has sent its own forces.

He said the conflicts presented opportunities for cooperation across the Middle East.

"That includes advancing prosperity, defeating the evils of terrorism and facing the threat of an Iranian regime that is threatening the region and causing so much violence and suffering."

Israel shares the antipathy many Arab states have towards Iran, seeing the Islamic Republic as a threat to its existence.

"I want you to know how much we appreciate the change in American policy on Iran which you enunciated so clearly," Mr Netanyahu, who had an acrimonious relationship with former US president Barack Obama, told Mr Trump at his official residence.

In stressing threats from Iran, Mr Trump echoed a theme laid out during weekend meetings in Saudi Arabia with Muslim leaders from around the world, many wary of the Islamic Republic's growing regional influence and financial muscle.

Sorry, this video has expired Mr Trump held talks with Mr Netanyahu (R) in Jerusalem. (Photo: Reuters/Jonathan Ernst)

Peace would be the 'ultimate deal'

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Mr Trump has vowed to do whatever necessary to broker peace between Israel and the Palestinians, dubbing a peace accord "the ultimate deal".

In Jerusalem he toured the Church of Holy Sepulchre, and became the first sitting president to visit the Western Wall, Judaism's holiest place, where Israel allows Jews to pray in a city sacred to three religions.

"During my travels in recent days, I have found new reasons for hope," Mr Trump said in a brief speech after landing in Tel Aviv.

But ahead of his Holy Land visit, he had given little indication of how he could revive talks that collapsed in 2014.

In the Gaza Strip, Palestinians rallied against Mr Trump and burned his picture and an effigy of him.

Trump accused of 'Iranophobia' after Saudi visit

Sorry, this video has expired Donald Trump joins a sword dance during his trip to Saudi Arabia.

Iran accused the United States of selling arms to "dangerous terrorists" in the Middle East and of spreading "Iranophobia", following Mr Trump's visit to Tehran's arch-foe Saudi Arabia.

Mr Trump signed arms deals worth almost $US110 billion during his two-day visit to Saudi Arabia.

"[Mr Trump] tried to encourage the countries of the region to purchase more arms by spreading Iranophobia," Iran's Foreign Ministry spokesman Bahram Qassemi said.

Sending a tough message to Tehran shortly after pragmatist Hassan Rouhani was re-elected president, Mr Trump had urged Arab and Islamic leaders to unite to defeat Islamist militants, saying Iran had for decades "fuelled the fires of sectarian conflict and terrors".

But Mr Rouhani was defiant, saying the Saudi Arabia summit was "ceremonial" and that said regional stability could not be achieved without Iranian help.

"Who can say the region will experience total stability without Iran? Who fought against the terrorists?" he said.

"It was Iran, Syria, Hezbollah and Syria. But who funded the terrorists?"

Mr Rouhani noted the contrast between young Iranians dancing in the streets to mark the re-election of a leader seeking detente with the West, and images of Mr Trump meeting with a galaxy of Arab autocrats, some of whose countries have spawned the Sunni militants hostile to Washington and Tehran alike.

He also said Iran would continue a ballistic missile program that has already triggered US sanctions, saying it was for defensive purposes only.

Mr Trump's foreign tour comes in the shadow of difficulties at home, where he is struggling to contain a scandal after firing James Comey as FBI director nearly two weeks ago.

The trip ends on Saturday after visits to the Vatican, Brussels and Sicily.

Mr Trump will have visited significant centres of Islam, Judaism and Christianity by the end of his trip, a point that his aides say bolsters his argument that the fight against Islamist militancy is a battle between "good and evil".

Mr Trump's tour comes in the shadow of difficulties at home. ( AP: Oded Balilty )

Reuters/AP