Government insiders say move would be a serious blow to prospect of a two-state solution

British officials fear Donald Trump could recognise Israeli control over illegal settlements on the West Bank in retaliation for the UK, Australia, France and others deciding to recognise Palestine.

Government insiders believe the US president is considering granting official recognition to the Israeli communities there, which would be a serious blow to achieving a two-state solution.

Trump made passing reference to Palestinian recognition during a fiery speech at the UN on Tuesday, saying: “This would be a reward for these horrible atrocities, including October 7.” Arab and European leaders are now engaged in an intense lobbying operation to make sure he does not go further by recognising West Bank settlements.

UK officials said some of the president’s allies were putting pressure on him to recognise Israeli sovereignty over settlements in the West Bank and Arab leaders were pushing back.