Published by Global Banking and Finance Review
Posted on July 31, 2025
2 min readLast updated: January 22, 2026
Australia and UK leaders discuss the Gaza crisis, emphasizing a two-state solution and international aid, with UK considering Palestinian state recognition.
SYDNEY (Reuters) -Australian Prime Minister Anthony Albanese said on Thursday that he had discussed the crisis in Gaza with his UK counterpart, Keir Starmer, and reiterated his government's strong support for a two-state solution for Israel and the Palestinians.
Starmer this week said Britain was prepared to recognise a Palestinian state in September at the United Nations General Assembly in response to growing public anger over the images of starving children in Gaza.
Australia has not yet made a formal decision to recognise Palestine though Albanese supports Israel's right to exist within secure borders and Palestinians' right to demand their own state.
In a statement, Albanese said they agreed on the importance of using international momentum to secure a ceasefire, the release of all Israeli hostages and the acceleration of aid. They also want to ensure militant group Hamas does not play a role in a future Palestinian state.
Some of Israel's closest allies, including France and Canada, have indicated they would recognise a Palestinian state amid growing international outrage over the dire humanitarian crisis in Gaza. A global hunger monitor has warned that a worst-case scenario of famine is unfolding in the enclave.
Israel has criticised France, Britain and Canada, saying their decision will reward Hamas.
Australian Treasurer Jim Chalmers on Thursday said the treatment of hostages and any involvement of Hamas in a future Palestinian state remained major obstacles for Australia but added the government would push for a two-state solution.
"It's a matter of when, not if, Australia recognises a Palestinian state ... but I don't want to put a time frame on it," Chalmers told ABC News.
(Reporting by Renju Jose in Sydney; Editing by Cynthia Osterman)
A two-state solution refers to the proposal for resolving the Israeli-Palestinian conflict by establishing two separate states for the two groups, allowing both to have their own governance and sovereignty.
Humanitarian aid is assistance provided to people in need, typically during crises such as natural disasters or conflicts, aimed at saving lives, alleviating suffering, and maintaining human dignity.
International recognition of a state is the acknowledgment by other countries and international organizations that a particular entity meets the criteria of statehood and has the right to exist as a sovereign state.
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