Israeli officials have signaled readiness for a renewed ground operation in Gaza if Hamas fails to disarm under the stalled U.S.-brokered framework, with Defense Minister statements and Southern Command preparations highlighting targeted strikes and fortified positions along the Yellow Line as ongoing pressure tactics. Israel maintains control of roughly two-thirds of the territory following a year-old ceasefire, including post-truce expansions via new outposts and barriers documented in satellite imagery, while conducting periodic airstrikes that have killed over 1,400 Palestinians since the truce. Hamas retains governance and military capabilities in the remaining coastal areas, with reconstruction and withdrawal talks stalled ahead of Israeli elections. These dynamics, alongside anniversary-related strikes on October 7, 2026, shape trader assessments of escalation risks in the near term.