Israeli government actions in the occupied West Bank continue to drive trader focus on potential annexation. In February 2026 the security cabinet approved expanded civilian authority over land registration, settler land purchases, and administrative enforcement, measures widely described as advancing de facto control. The cabinet followed in April with approval for 34 new settlements, the largest batch in years. These steps build on prior settlement growth and outposts but stop short of formal Knesset legislation extending Israeli sovereignty. The United States has repeatedly stated its opposition to unilateral annexation, while no major new diplomatic or legislative developments have occurred since early May. Traders assess whether ongoing administrative integration will cross into declared sovereignty before any specified deadline.