Israel's territory is the territory which the world recognizes as Israel and not the territory which Israel claims. Israel has no sovereignty outside of this territory. If you are unable to understand why this is so, you can imagine that your favourite hostile nation Iran is claiming that all of Israel belongs to Iran. If we used your kind of logic (here logic is used in a very broad sense) it would be legal for Iran to perform military operations etc. inside Israel. Obviously that does not work...
Wes Craven, director of 'Scream' and 'Nightmare on Elm Street', dies 76 (Haaretz)
from the article: Fayyad to Haaretz: Palestinians are prepared for statehood