In brief
The 2026 Israeli parliamentary election produced no single majority, with Netanyahu’s coalition and the opposition both short of the 61 seats needed to govern. Arab parties are poised for a record 19 seats, and the final count of double-envelope ballots is expected by Thursday. Uncertainty remains over coalition negotiations and the eventual formation of a government.
No single party secured a majority in Israel’s 2026 parliamentary election, with the Netanyahu‑led bloc projected to win 53 seats and the Arab‑dominated block set for a record 19. The 120‑seat Knesset now stands divided, with both sides short of the 61 seats required for a governing coalition. The preliminary tally covers more than 85% of ballots, and the remaining double‑envelope ballots are expected to finish by Thursday, according to United Press International.
United Press International reported that Netanyahu’s Likud—projected at 26 seats—leads the right‑wing bloc, which also includes parties such as Yisrael Beiteinu and the National Unity list. The opposition, headed by former military chief Gadi Eisenkot, held 48 seats. The Arab bloc, comprising the Joint List and Ra’am, was projected to win 19 seats, a new high compared to the 15 seats the Arab parties secured in 2020. Voter turnout reached 77.7%, the highest level since the 1999 elections, and about 80% of Palestinian citizens of Israel turned out, boosting the Arab vote.
"The preliminary poll results point to complete distrust in Netanyahu and the government of Oct. 7, of the Zionist majority and the majority of Israeli citizens," Eisenkot said on social media according to a United Press International story.
The preliminary poll results point to complete distrust in Netanyahu and the government of Oct. 7, of the Zionist majority and the majority of Israeli citizens.
Netanyahu, meanwhile, told supporters that his right‑wing bloc held a decisive majority among the Jewish and Zionist public, calling Likud "the largest party in Israel." He added that a strong, right‑wing, national government must be established.
We must establish a strong, right‑wing, national government.
Market Fallout and Currency Move
Xinhua reported that Tel Aviv stocks fell sharply as partial election results left Netanyahu’s bloc short of a parliamentary majority. The TA‑35 index declined 1.81%, the TA‑125 index 2.46%, and the TA‑90 index 4.47%. Bank analysts cited political uncertainty and the risk of another Netanyahu‑led government struggling to address cost‑of‑living pressures and renewed war fears with Iran as reasons for the sell‑off. Senior analyst Gad Lior of the Israeli daily Yedioth Ahronoth noted that the market reacted strongly to the perceived uncertainty.
The Israeli shekel weakened against major currencies, dropping 1.62% against the U.S. dollar to 3.128 per dollar. Joseph Freiman, CEO of financial group Prico, told Xinhua that the shift reversed the shekel’s earlier gains, as most projections early in the day favored the opposition but Netanyahu’s bloc gradually took the lead as counting progressed.
Coalition Negotiations Loom
Al Jazeera detailed the procedural steps that follow a fragmented result. President Isaac Herzog will consult party leaders to select a candidate for prime minister, who then has 28 days to assemble a coalition, extendable by 14 days. If no candidate succeeds, the mandate may pass to another member of parliament or, ultimately, the Knesset may be dissolved for fresh elections.
Abbas, the leader of Ra’am, said he hopes the final election results will allow the anti‑Netanyahu bloc to win the 61 seats required for a government. "With the numbers we have now, there is no government," Abbas told Israel’s Channel 12, as reported by Al Jazeera.
With the numbers we have now, there is no government.
Former Israeli ambassador Alon Pinkas warned that governments may find it difficult to avoid Arab coalitions, noting that "Arabs can’t be kept outside and only being considered and co‑opted when you need their votes." He added that Arab‑led lists will make demands that a Jewish‑led coalition might not support.
The final vote count is expected later in the week, with official results formally published on 4 November, according to Al Jazeera. Meanwhile the double‑envelope ballots, which carry the remaining 15% of votes, are set to finish by Thursday, potentially shifting seat totals.
The situation remains unresolved: it is unclear whether Netanyahu’s bloc, the opposition, or the Arab parties will secure a majority through coalition negotiations, or how long the process will take. Final seat allocations for the Arab bloc could change once the remaining ballots are tallied, and the exact composition of the future cabinet is still undecided. The financial markets and the shekel will continue to react to developments as the vote count winds down.
