Israel’s inconclusive October 27 election left Prime Minister Benjamin Netanyahu’s bloc with 53 Knesset seats and Gadi Eisenkot’s opposition bloc with 48, short of the 61-seat majority needed for government formation. Arab parties secured a record 19 seats, positioning them as potential kingmakers despite most Jewish parties’ longstanding refusal to partner with them. Netanyahu remains caretaker prime minister while President Isaac Herzog granted Eisenkot the initial mandate on November 8 to build a coalition within 28 days, extendable by 14 days. Ongoing negotiations center on conscription policies, security priorities, and possible unity arrangements or new elections in early 2027. These procedural timelines and coalition arithmetic shape trader assessments of when Netanyahu might leave office.