Israeli government policies continue to advance administrative integration of West Bank Area C through land registration and settlement expansion, measures adopted by the security cabinet in February 2026 that facilitate state control over territory without an immediate formal sovereignty declaration. Finance Minister Smotrich and aligned coalition partners have prioritized these steps, including approvals for new settlements and infrastructure, as part of long-standing coalition commitments. International diplomatic responses and U.S. policy signals remain key variables that could influence the timing or scope of any explicit annexation. Traders monitor Knesset actions, settlement tenders, and bilateral talks for catalysts that might shift the probability of a formal territorial claim by the market's resolution date.