This Thursday, following a vote two weeks ago in the Icelandic parliament, the country's government granted formal recognition to the state of Palestine. The Althingi's move ratifies recognition of Palestine with borders as-before the 1967 Six-Day War.
In the vote taken by the 63 members of parliament, 38 voted for and 13 abstained. In passing the resolution Iceland became the first Western European state to formally recognise the Palestinian state. In late November Cyprus similarly recognised Palestine with 1967 borders.
The move by the Icelandic government comes as European states such as France, Spain, and Ireland have upgraded their countries' Palestinian missions to full embassies recently.

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Iceland formally recognises Palestinian state with pre-1967 borders