Israel's Election Leaves Both Blocs Short of Majority, Prompting Coalition Talks
Prime Minister Benjamin Netanyahu's Likud bloc and the opposition led by Gadi Eisenkot each fell short of the 61 seats needed to form a government, setting the stage for weeks of coalition negotiations.
Israel's final election count left Prime Minister Benjamin Netanyahu's right-wing bloc and the opposition alliance headed by former military chief Gadi Eisenkot without the 61 seats required for a majority in the 120-seat Knesset. Netanyahu's Likud party and its hard-right partners secured 53 seats, down from 64 in the 2022 election, while Eisenkot's bloc obtained 48 seats. Both sides now face a period of coalition bargaining and political uncertainty.
Eisenkot indicated that his bloc will not rely on the Arab-led parties, which together won a record 19 seats, as they do not meet his conditions for partnership. Meanwhile, Likud has claimed, without presenting evidence, that foreign interference aimed to influence the election outcome, prompting Supreme Court Justice Noam Sohlberg, who chairs the Central Elections Committee, to request an investigation by the Shin Bet security agency into alleged foreign funding influences.
Qatar, accused of attempting to mobilize Arab voters, denied any interference, describing the allegations as "ridiculous and dangerous in equal measure." Opposition leaders have also called for a thorough investigation while warning against using such claims to question the election results.
The stalemate could keep Netanyahu in a caretaker role while coalition talks continue, or lead to another election. Economic markets reacted, with the shekel experiencing its steepest intraday drop since 2023 and the Tel Aviv benchmark index falling 4.1% for the week. > "We expect some near-term volatility for Israeli assets until a new government is formed and decides on fiscal consolidation and war-related spending," said Eirini Tsekeridou, a fixed-income analyst at Julius Baer, adding that Israel's economic fundamentals and monetary policy should provide support.
President Isaac Herzog is scheduled to consult with the competing parties next week and will name the leader he believes has the best chance of forming a majority government. Netanyahu may receive the first invitation to begin the 28-day coalition-building process, which can be extended by up to 14 days. If negotiations fail, new elections would be called, with Netanyahu remaining in office in the interim. The previous government-formation efforts have ranged from 20 to 100 days, according to the Israel Democracy Institute.