A few hundred people marched down Regent Street, behind the Palestinian and Hezbollah terror flag, before sitting down at the junction with Oxford Street shortly after 4.30pm on Sunday.
Many carried banners with messages including “Boycott Israel”, “Freedom for Palestine” and “Zionism = racism”.
The demonstration wound its way through the capital’s retail heart, which was busy with shoppers.
A man on a loudspeaker led the protesters in chants of “Free Palestine”.
One speaker then blamed the devastating In Grenfell Tower fire, which has left at least 58 people dead, on Israel supporters. Addressing the crowd at Grosvenor Square, he said: “Many innocents were murdered by Theresa May’s cronies – many of which are supporters of Zionist ideologies. Some of the biggest corporations who are supporting the Conservative Party are Zionists. They are responsible for the murder in Grenfell. The Zionist supporters of the Tory Party.”