The United Kingdom now formally recognises a Palestinian state, the Prime Minister Sir Keir Starmer has said in a video statement on social media.
Ahead of the announcement, Canada became the first G7 nation to make the same move, followed by Australia.
Starmer said it keeps "alive the possibility of peace" and insists the UK will "keep fighting to bring" home Israeli hostages.
However, Israel's foreign ministry says "recognition is nothing but a reward for jihadist Hamas".