Australia and Israel, once staunch allies, have seen an erosion of their relations over the course of the war in the Gaza Strip. Australia’s decision to recognize a Palestinian state came after the government sensed a major shift in the domestic mood over the war in Gaza,

(Reuters) -Foreign ministers from European countries, Australia and Britain on Friday jointly condemned Israel's plans to construct a settlement east of Jerusalem. The approval of the "E1" project would bisect the West Bank and cut it off from East Jerusalem, fragmenting territory Palestinians seek for an independent state.