Israel's government has advanced de facto control over West Bank territory through settlement expansion, land registration processes in Area C, and transfers of administrative and policing authority from military to civilian bodies, as approved in security cabinet decisions through February and August 2026. These steps integrate parts of the territory into Israeli regulatory frameworks without a formal declaration of sovereignty. Netanyahu has at times sidelined explicit annexation bills amid U.S. and regional diplomatic pressure, favoring incremental measures over a unilateral sovereignty vote before the end of 2026. Traders assign low probability to official annexation by the market deadline because such a step would require crossing explicit political thresholds that remain constrained by international relations and coalition priorities.