Israel’s government has advanced de facto control in the West Bank through land registration processes, civilian administrative transfers, and settlement expansions approved in February and June 2026, yet these steps fall short of a formal sovereignty declaration. With roughly four months remaining until the end of 2026, no binding Knesset legislation or cabinet decision for outright annexation has advanced, consistent with prior pauses tied to U.S. and regional diplomatic pressure. International statements continue to condemn incremental measures while settlement activity sustains existing realities without crossing the market’s threshold for official territorial incorporation. Traders therefore price the low likelihood of a formal move in the narrow remaining window, absent a major catalyst such as a security escalation or political realignment.