Israeli political dynamics and the short timeline to 2027 underpin trader consensus against formal annexation of West Bank territory. Ongoing settlement expansion, outpost legalization, and land registration measures advance de facto control under the current coalition, yet these steps fall short of the Knesset legislation or sovereignty declaration required for formal annexation. Prime Minister Netanyahu has shown restraint on explicit sovereignty moves ahead of the late October 2026 election, while far-right partners press the issue without securing immediate passage. International constraints and the absence of scheduled votes in the remaining weeks further limit near-term prospects. Scenarios that could still shift probabilities include a post-election coalition realignment enabling rapid legislation or an unforeseen security crisis prompting emergency action.