Israel’s government has accelerated de facto control over West Bank Area C through February 2026 cabinet measures on land registration as state property, expanded ministerial oversight, and record settlement approvals, yet these steps stop short of a formal Knesset declaration extending Israeli sovereignty. Prime Minister Netanyahu has prioritized incremental bureaucratic integration and settlement growth over an explicit annexation vote, citing U.S. opposition under the Trump administration and the need to manage regional priorities. No binding sovereignty legislation is scheduled before the potential October 2026 elections, and international statements from dozens of governments have underscored risks to a two-state framework without prompting reversal. Traders price formal annexation before December 31, 2026, at just 9 percent, reflecting this distinction between administrative consolidation and official legal annexation alongside diplomatic constraints.