Palestinian officials, by now used to unwelcome policy shifts from Mr. Trump, nonetheless summoned new outrage.

“We cannot express horror and shock because this is a pattern, but that doesn’t make it any less horrific,” said Hanan Ashrawi , a veteran Palestine Liberation Organization official. “It sends a clear signal that they have total disregard for international law, for what is right and just, and for the requirements of peace.”

And Saeb Erekat , the chief Palestinian negotiator, said the Trump administration’s decision was the latest of “unceasing attempts to replace international law with the ‘law of the jungle.’”

Within hours of the announcement, the State Department issued a travel alert to Americans planning to visit Jerusalem, the West Bank or the Gaza Strip. “Those opposed to the Secretary of State’s announcement may target US govt facilities, interests, and citizens,” the department said on Twitter.

In Washington, Mr. Pompeo said the decision would provide greater space for the Israelis and Palestinians to negotiate over the status of the settlements. He said that the issue could be largely left to Israeli courts to decide, and that it had no bearing on legal conclusions regarding similar situations elsewhere in the world.

Instead, Mr. Pompeo said, the issue must be solved by the Israelis and the Palestinians. “And arguments about who is right and wrong as a matter of international law will not bring peace,” he said.

The timing of Mr. Pompeo’s announcement is almost certain to bolster Mr. Netanyahu’s political fortunes should Israel be headed to a third round of elections this year. He denied that the decision was tied to Israel’s political stalemate, saying, “We conducted our review, and this was the appropriate time to move forward.”