Israeli government actions in early 2026 have advanced administrative control over parts of the West Bank through expanded land registration as state property, transfer of civil powers from military to civilian ministries, and record settlement approvals, moves widely described as steps toward de facto annexation of Area C. These build on a July 2025 Knesset resolution supporting sovereignty claims and a February 2026 security cabinet decision allocating funds for formal land processes, though no explicit declaration of Israeli sovereignty over new territory has occurred. Prime Minister Netanyahu has faced counterpressure from the United States against formal steps, while coalition partners continue pushing settlement growth that reduces prospects for territorial reversal. Traders assess these incremental measures against diplomatic constraints and potential shifts in U.S. policy or regional dynamics before any defined resolution date.