Since taking office, Trump has backed away from his campaign pledge to move the embassy in a gesture to Israel, instead saying he's still studying the issue. But Tillerson linked Trump's deliberations directly to his aspirations for brokering Mideast peace.
"The president is being very careful to understand how such a decision would impact the peace process," Tillerson said in an interview broadcast today on NBC's "Meet the Press." He said Trump's decision would be informed by feedback from all sides, including "whether Israel views it as helpful to a peace initiative or perhaps a distraction."
Jerusalem's status is one of the most emotionally charged issues in the conflict, with both sides laying claims. Israel captured east Jerusalem - claimed by Palestinians for the capital of a future independent state - from Jordan in 1967 and annexed it, a move not internationally recognized.
US presidents of both parties have repeatedly waived a US law requiring the embassy be moved to Jerusalem. The most recent waiver - signed by former President Barack Obama - expires on June 1. Trump is expected to sign a six-month renewal of the waiver before it expires, as he continues deliberating.