Israeli opposition leader Yair Lapid has condemned a decision by Australia, the United Kingdom and Canada to recognise a Palestinian state, calling it a "diplomatic disaster".

"It is a bad step and a reward for terrorism," Lapid wrote on social media platform X.

"A functioning Israeli government could have prevented this. Through smart and serious work, through professional diplomatic dialogue, through proper advocacy."

Lapid, whose Yesh Atid party sits in the political middle ground, also accused Prime Minister Benjamin Netanyahu's religious-nationalist government of presiding over both a "security disaster" and "diplomatic crisis".

"The government that brought upon us the gravest security disaster in our history is now delivering the worst diplomatic crisis ever," he wrote, referring

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