Israeli cabinet decisions since February 2026 have accelerated land registration in West Bank Area C, eased Israeli purchases of settlement land, expanded enforcement powers, and transferred authority over certain holy sites, measures widely described as de facto consolidation of control. These steps build on existing settlement expansion and new construction tenders issued in October 2026, yet stop short of any official declaration or Knesset legislation claiming sovereignty over additional territory. Coalition pressure from far-right ministers favoring formal annexation remains balanced against constraints from the prime minister’s office and U.S. opposition to explicit sovereignty claims. Traders assess the distinction between administrative actions and a qualifying legal act of annexation as the central variable, with upcoming legislative sessions and potential elections likely to test whether momentum shifts toward a formal resolution.
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