Israel pursuing ‘undeclared annexation’ of West Bank, Peace Now says

What Happened

Peace Now, an Israeli advocacy group, released a report on Tuesday accusing the government of Prime Minister Benjamin Netanyahu of pursuing an 'undeclared annexation' of the occupied West Bank through a series of coordinated measures that erode the Oslo Accords. The report, obtained by Ynet, highlights steps including the security cabinet’s February decision to authorise the Civil Administration—a body under the defence ministry—to enforce regulations on environmental protection, water and archaeology in Areas A and B, which were previously under Palestinian civil control. In June, the Civil Administration stripped the Palestinian municipality of Hebron of planning powers over settlements and holy sites. In July, Israeli military orders requisitioned Palestinian land inside Area A for a road connecting settlements, which Peace Now says is the first such order for a civilian settlement purpose since the Oslo Accords. The group documented 23 settlement outposts established in Area B over the past two and a half years, along with road construction, water source takeovers, and displacement of Palestinians. Peace Now also noted the government has withheld tax revenues collected for the Palestinian Authority—transferring only about half of the 11 billion shekels owed between 2022 and 2025, and none since June 2025—amounting to a systemic weakening of the PA. Finance Minister Bezalel Smotrich praised the report as a 'certificate of achievement,' stating, 'What they call 'de facto annexation' we call establishing Israel's security belt,' and adding, 'I am proud of the settlement revolution I have led.'

Key Actors

Why It Matters

The measures represent a significant erosion of the Oslo Accords framework, which divided the West Bank into areas of Palestinian and Israeli control, and risk creating an irreversible de facto annexation without formal legislation. This undermines the viability of a two-state solution, heightens tensions, and may lead to further international legal and diplomatic challenges, including potential ICJ or ICC proceedings. The economic strangulation of the Palestinian Authority raises the spectre of its collapse, potentially plunging the West Bank into greater chaos and settler expansion.

Watch For

Monitor any formal Israeli legislative moves toward annexation or dismantling of the Palestinian Authority, as well as Palestinian and international reactions, including possible UN Security Council resolutions or renewed ICC scrutiny. Watch whether Israel resumes tax revenue transfers or further restricts them, and track settlement expansion and outpost legalisation, particularly in Areas A and B. Also observe the security situation in the West Bank, including potential escalations from armed factions, and the stance of regional mediators like Egypt and Qatar.