Israel suspending its annexation is excellent for Palestine and very good for Ethiopia. There are ongoing negotiations with Egypt and Sudan about the Abay(Nile) River which is somewhat tense. Sometime ago Trump administration wanted to mediate, which was accepted by all parties (with some reluctance) but very quickly the mediator wanted to become an arbiter. The Trump administration was perceived to favor the Egyptians. They tried to pressure Ethiopia into making concessions which it was not prepared to do. The end result was Ethiopia withdrawing from the US mediated effort and soured relation between the two countries.

What a lot of people here(In Ethiopia) think is, the reason Trump Admin was favoring Egypt's weak(er) negotiating position over Ethiopia and the other Nile basin countries is, he and his administration wanted to secure Egyptian support for the annexation of Palestinian territories.

If the annexation is off the table, USA will have a little less reason to use its power to pressure Ethiopia into an unfavorable agreement.

Frankly, the whole US effort was quite absurd. USA was seen very favorably but the rush to make Ethiopia the sacrificial lamb (to steal some poor people's land) is something that will have a lasting negative effect.

This article provides some background of what's going on. https://foreignpolicy.com/2020/07/22/trump-administration-af...