Israel’s government has pursued incremental administrative changes and settlement expansion in the West Bank, including February 2026 security cabinet decisions transferring civil powers to ministries and advancing land registration in Area C. These steps strengthen de facto control without formal Knesset legislation extending Israeli sovereignty, a threshold repeatedly described by officials as requiring parliamentary approval. Netanyahu has at times sidelined de jure annexation bills amid U.S. and regional pressure, while coalition priorities have centered on other security matters. With only months remaining before 2027 and no scheduled vote or official timeline for sovereignty legislation, traders assess the risk of formal annexation in this window as low.