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    Home > Headlines > What would wider recognition of Palestine mean for Palestinians and Israel?
    Headlines

    What would wider recognition of Palestine mean for Palestinians and Israel?

    Published by Global Banking & Finance Review®

    Posted on September 4, 2025

    5 min read

    Last updated: January 22, 2026

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    Quick Summary

    Countries recognizing Palestine aim to pressure Israel for peace talks. Palestinian Authority seeks reforms, while diplomatic missions may be upgraded.

    Table of Contents

    • Understanding Palestinian State Recognition
    • Current Status of Palestinian Statehood
    • Potential Changes in Diplomatic Relations
    • Reactions from Israel and the U.S.

    What would wider recognition of Palestine mean for Palestinians and Israel?

    Understanding Palestinian State Recognition

    (Corrects reporting credit)

    Current Status of Palestinian Statehood

    (Reuters) -Several more countries are expected to formally recognise a Palestinian state at a world summit convened on Monday by France and Saudi Arabia, a day after Australia, Britain, Canada and Portugal took the step, angering Israel.

    Potential Changes in Diplomatic Relations

    WHAT IS THE STATUS OF PALESTINIAN STATEHOOD NOW?

    Reactions from Israel and the U.S.

    The Palestine Liberation Organization declared an independent Palestinian state in 1988, and most of the global South quickly recognised it. Today, about 150 of the 193 U.N. member states have done so.

    Israel's main ally, the United States, has long said it supports the goal of a Palestinian state, but only after the Palestinians and Israel agree on terms for a two-state solution at negotiations. Until recent weeks, the major European powers shared this position.

    However, no such Israeli-Palestinian negotiations have been held since 2014, and Israeli Prime Minister Benjamin Netanyahu has now said there will never be a Palestinian state.  

    A delegation representing the State of Palestine has observer status at the United Nations - but no voting rights. No matter how many countries recognise Palestinian independence, full U.N. membership would require approval by the Security Council, where Washington has a veto.

    Palestinian diplomatic missions worldwide are controlled by the Palestinian Authority, which is recognised internationally as representing the Palestinian people.

    The PA, led by President Mahmoud Abbas, exercises limited self-rule in parts of the Israeli-occupied West Bank under agreements with Israel. It issues Palestinian passports and runs the Palestinian health and education systems.

    The Gaza Strip has been administered by the Hamas militant group since 2007, when it drove out Abbas's Fatah movement after a brief civil war.

    WOULD COUNTRIES OPEN NEW EMBASSIES?

    Palestinian diplomatic missions in countries recognising a Palestinian state are expected to be upgraded to the full status of embassies. But countries are not expected to be able to open new, fully-fledged embassies in the Palestinian territories, where Israel controls access.

    Around 40 countries have consulates or representative offices either in the PA's West Bank base Ramallah or in parts of Jerusalem captured by Israel in 1967, where the Palestinians hope to have their capital.

    Israel considers all of Jerusalem its own undivided capital. Fully-fledged embassies in Israel are mostly located in Tel Aviv, although the United States moved its embassy to Jerusalem during President Donald Trump's first term.

    WHAT IS THE AIM OF RECOGNISING A PALESTINIAN STATE?

    Countries moving to recognise a Palestinian state say the move is intended to put pressure on Israel to end its devastating assault on Gaza, curtail the building of new Jewish settlements in the occupied West Bank and recommit to a peace process with the Palestinians.

    French President Emmanuel Macron, the first leader of a major Western power to endorse recognition, said the move would be accompanied by a commitment by the PA to enact reforms, which would improve Palestinian governance and make it a more credible partner for the post-war administration of Gaza.

    WHAT HAS RECOGNITION MEANT IN PRACTICE?

    Those who see recognition as a mere gesture point to the limited influence in the conflict of countries such as China, India, Russia and many Arab states that recognised Palestinian independence decades ago.

    Without a full seat at the U.N. or control of its own borders, the PA has only limited ability to conduct bilateral relations.

    Israel restricts access for goods, investment and educational or cultural exchanges. There are no Palestinian airports. The landlocked West Bank can be reached only through Israel or through the Israeli-controlled border with Jordan, and Israel now controls all access to the Gaza Strip since capturing Gaza's border with Egypt during the ongoing war.

    Still, countries planning recognition and the PA itself say it would be more than an empty gesture.

    Husam Zomlot, head of the Palestinian mission to the UK, said it could lead to partnerships between entities on an equal footing.

    It might also force countries to review aspects of their relationships with Israel, said Vincent Fean, a former British diplomat in Jerusalem.

    In Britain's case, this might result in banning products that come from Israeli settlements in occupied Palestinian territories, he said, even though the practical impact on the Israeli economy would be minimal.

    HOW HAVE ISRAEL AND THE UNITED STATES REACTED?

    Israel, facing a global outcry over its conduct in the Gaza war, says recognition rewards Hamas for the attacks on Israel that precipitated the war in October 2023.

    "A Palestinian state will not be established west of the Jordan River," Prime Minister Benjamin Netanyahu said.

    The United States opposes the recognition moves by its European allies. It has imposed sanctions on Palestinian officials, including blocking Abbas and other PA figures from attending the U.N. General Assembly by denying and revoking visas.

    (Reporting by Kate Holton in London, Mohamed Ezz and Alexander Dziadosz in Cairo, James Pomfret in Hong Kong, Ahmed Rasheed in Baghdad, Ali Sawafta in Ramallah and Nidal al-Mughrabi in Gaza;Writing by Michael Georgy;Editing by Peter Graff, Kevin Liffey, Ros Russell)

    Key Takeaways

    • •Several countries are recognizing Palestine, affecting Israel.
    • •Palestinian statehood remains a contentious issue globally.
    • •Recognition aims to pressure Israel for peace negotiations.
    • •Palestinian Authority seeks reforms for governance credibility.
    • •Diplomatic missions may be upgraded to embassies.

    Frequently Asked Questions about What would wider recognition of Palestine mean for Palestinians and Israel?

    1What is state recognition?

    State recognition is the formal acknowledgment by one state of another state's existence and sovereignty, allowing it to participate in international relations.

    2What is the Palestine Liberation Organization?

    The Palestine Liberation Organization (PLO) is an umbrella organization representing the Palestinian people, established to promote Palestinian nationalism and advocate for their rights.

    3What is observer status at the United Nations?

    Observer status at the United Nations allows entities to participate in meetings and activities without being full members, lacking voting rights.

    4What is a two-state solution?

    A two-state solution is a proposed resolution to the Israeli-Palestinian conflict, envisioning an independent State of Palestine alongside the State of Israel.

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