Israel's government has accelerated de facto control over West Bank Area C through February 2026 security cabinet decisions that expand land registration powers for the Justice Ministry, ease settler property purchases, and shift civil administration functions from military to civilian Israeli agencies. These steps build on earlier Knesset resolutions and settlement approvals while advancing bureaucratic integration short of formal sovereignty declarations. U.S. opposition under President Trump, along with international criticism, has constrained overt annexation moves despite coalition pressure from figures like Finance Minister Smotrich. Traders weigh these incremental policies against the lack of a binding sovereignty vote or Gaza-related territorial claims, with upcoming Knesset legislation and potential elections serving as near-term catalysts that could influence any formal step.