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The election on Tuesday is taking place because Mr. Netanyahu was unable to form a governing coalition after the April ballot when a onetime ally, Avigdor Lieberman, refused to join him.

Mr. Lieberman, a right-wing proponent of annexation, mocked Mr. Netanyahu’s announcement in a two-word tweet for the way it had been advertised: “Dramatic statement,” he said, adding two emojis showing tears of laughter.

Advocates of a two-state solution to the Palestinian conflict, who have been warning that annexation could be disastrous for Israel, said Tuesday that a move like the one Mr. Netanyahu was proposing could be enough to drive the Palestinian Authority either to abandon its security cooperation with Israel on the West Bank or to fold up its tents altogether.

Either action could lead to violence that could force Israel to send its troops back into territory where Palestinians have largely policed themselves under the Oslo process, said Nimrod Novik, a veteran Israeli peace negotiator.

“Unlike many of his coalition colleagues, Netanyahu cannot get a pass for not understanding the potentially devastating consequences,” Mr. Novik said. “Consequently, risking chaos on the West Bank and likely spillover to Gaza is worse then reckless. It is stupid.”

“If it is just electioneering, it signals panic,” he added. “If there is a risk that he will make good on it, that is probably the most important reason to hope that he is not re-elected.”