Reykjavik city council has backtracked after announcing that it had voted to boycott all Israeli products.
Last week, the Icelandic capital's municipality said it was in favour of a boycott "as long as the occupation of Palestinian territories continues".
Council members said the boycott was a symbolic act demonstrating their support for Palestinian statehood and condemnation of Israel's "policy of apartheid".
However, over the weekend the city's mayor Dagur Eggertsson said that only goods produced in "occupied areas" of Israel will be boycotted.
