Israel has advanced de facto control over parts of the West Bank through accelerated settlement approvals, land registration processes, and transfers of administrative authority from military to civilian bodies, particularly in Area C. In February 2026 the security cabinet endorsed measures to register disputed lands as state property and ease Israeli acquisitions, actions widely viewed as consolidating governance integration without a formal sovereignty declaration. Additional approvals of dozens of new outposts and settlement units in April 2026 have further expanded physical presence. Trader sentiment reflects the distinction between these incremental steps and an explicit Knesset vote or ministerial announcement extending Israeli law, with international diplomatic pressure and U.S. positions serving as potential constraints on any outright annexation before the market’s resolution window closes.