Israel's government has shown no active legislative, cabinet, or diplomatic steps toward formal annexation of Gaza territory ahead of the June 30, 2026 deadline, contributing to the strong market consensus against the outcome. Past 2025 proposals linking limited sovereignty claims to hostage negotiations have not advanced into binding policy, while recent cabinet decisions have instead prioritized land registration and administrative integration in the West Bank. With only weeks remaining, the absence of new announcements or security-cabinet directives on Gaza sovereignty leaves little room for implementation under current procedural timelines. Traders assign low odds to rapid reversals such as sudden legislative overrides or unannounced security shifts, given the compressed window and competing priorities in regional negotiations.