Israeli leaders have signaled intent to retain expanded control over much of Gaza beyond the Yellow Line buffer, now encompassing roughly 60-70 percent of the territory, while conditioning any major withdrawal on Hamas's full disarmament and demilitarization under the U.S.-backed framework. Defense officials have advanced phased operational plans for a renewed multi-division ground maneuver targeting Gaza City, where remaining Hamas leadership and infrastructure are concentrated, though execution remains tied to stalled diplomatic progress and upcoming elections. Ongoing targeted strikes, raids, outpost construction, and incremental territorial expansion reflect an attrition strategy amid Hamas's reported rebuilding efforts, with assessments that a larger offensive could become necessary if talks fail. These dynamics shape trader views on the timing and likelihood of escalation before key political deadlines.