PARIS—French President Emmanuel Macron’s decision to recognize a Palestinian state has sparked a backlash from the Israeli government, galvanizing hard-liners and drawing an accusation from Prime Minister Benjamin Netanyahu that he is stirring up antisemitism. Macron’s decision shook up the status quo among Western powers, which for decades dangled recognition as a means to bring Israel and the Palestinians to the negotiating table for a two-state solution. Australia and Canada have said they are ready to follow in France’s footsteps, while the U.K. has said it would do so if Israel doesn’t agree to a cease-fire in Gaza. Israeli hard-liners...