Israel’s 2026 parliamentary election, held on Tuesday, remains undecided as ballots continue to be counted; Prime Minister Benjamin Netanyahu’s bloc is projected to win 53 seats, the opposition under former military chief Gadi Eisenkot 48, and the Arab‑dominated Joint List and Ra’am a record 19 seats. The 77.7 percent voter turnout is the highest since 1999.
With more than 85 percent of votes counted, preliminary results show Netanyahu’s bloc short of the 61 seats needed for a majority in the 120‑seat Knesset, prompting market anxieties. The Tel Aviv Stock Exchange’s benchmark TA‑35 index fell 1.81 percent, while the broader TA‑125, TA‑90, and TA‑Banks‑5 indices slid 2.46, 4.47, and 4.85 percent respectively.
Gad Lior, a senior analyst at the Israeli daily Yedioth Ahronoth, said the sell‑off was driven by political uncertainty and concerns that a Netanyahu‑led government could still falter on economic challenges, adding that fears of renewed conflict with Iran also weighed on investor sentiment.
"The sell‑off was driven by political uncertainty and concerns that another Netanyahu‑led government might again struggle to address economic challenges, particularly the high cost of living. Fears of a renewed war with Iran also weighed on investor sentiment," he said.
President Isaac Herzog is scheduled to consult party leaders on who to nominate as prime minister, with the chosen candidate given 28 days to form a coalition, extendable by 14 more days; failure could lead to another election.
Earlier exit polls from Al Jazeera reported that Arab parties were projected to secure 17 seats, slightly below the 19 currently projected, reflecting the dynamic nature of the count and the uncertainty surrounding final tallies. Those figures are not yet confirmed and may shift as the remaining double‑envelope ballots are tallied, expected to conclude by Thursday.
