The UK, Australia and Canada formally recognised a Palestinian state on September 21, prompting Israeli Prime Minister Benjamin Netanyahu to hint at increased settlement activity in response.

The coordinated initiative from the three Commonwealth nations reflects growing concern at Israel's conduct of the war in Gaza and steps taken by the Israeli government to prevent the creation of a Palestinian state, including continued expansion of settlements in the West Bank and the targeting of Bedouins in Palestinian controlled areas.

British Prime Minister Keir Starmer said the UK's move is intended "to revive the hope of peace for the Palestinians and Israelis" and insisted it was not a reward for Hamas, he added, "Because it means Hamas can have no future."

"Today, to revive the hope of peace and a two-state solution, I state clearly as prime minister of this great country that the United Kingdom formally recognises the state of Palestine," Starmer said.

Canadian Prime Minister Mark Carney said, "The current Israeli government is working methodically to prevent the prospect of a Palestinian state from ever being established. It has pursued an unrelenting policy of settlement expansion in the West Bank, which is illegal under international law."

"It is in this context that Canada recognises the State of Palestine and offers our partnership in building the promise of a peaceful future for both the State of Palestine and the State of Israel," he added.

Prior to the announcement Australian Prime Minister Anthony Albanese said he would meet with the British counterpart in London with his official page writing, "Prime Minister Albanese will then travel to London and meet with United Kingdom Prime Minister Sir Keir Starmer and hold a series of other high level meetings."

Netanyahu responded by saying the establishment of a Palestinian state "will not happen" and that "a Palestinian state will not be established west of the Jordan River."

In a subsequent statement on social media, Netanyahu hinted at increased settlement activity, saying: "For years I prevented the establishment of this terror state facing great pressures, domestic and foreign... Not only that, we doubled the Jewish settlement in Judea and Samaria. The response to the latest attempt to force a terror state on us in the heart of our land will be given after my return from the US Wait."

The UK announcement was widely anticipated after Starmer said in July that Britain would recognise a Palestinian state unless Israel agreed to a ceasefire in Gaza, allowed UN aid delivery and took other steps toward long-term peace.

More countries are expected to join the recognition list at the UN General Assembly this week, including France, which, like the UK, is a permanent Security Council member.

Hamas welcomed the decision while Palestinian President Mahmoud Abbas called the moves "an important and necessary step toward achieving a just peace."