Israel’s government has accelerated de facto integration of West Bank territory through February 2026 security cabinet decisions on land registration as state property, civilian administrative transfers, and expanded settlement approvals in Area C. These steps build on prior settlement expansion and symbolic Knesset resolutions but stop short of formal legal annexation or sovereignty declarations. US opposition under the Trump administration, including explicit warnings against such moves, combined with broader diplomatic and international constraints, has discouraged binding legislative action. Traders price the low likelihood of formal annexation before 2027 on the absence of scheduled Knesset votes, coalition priorities focused on incremental control rather than outright sovereignty claims, and historical patterns where similar proposals were deferred amid external pressure.