Israel is not expanding two West Bank settlements. They are "thickening" them, as they'll be creating new buildings within existing built-up areas. Thus, they are conforming to the Bush's administration wish that Israel not expand its West Bank settlements.
Also, despite the cease-fire, Israel still has an air and sea blockade around Lebanon. Of course, this is also okay as Israel believes that it is "at a cessation of hostilities, not a cease-fire."
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