Israel’s October 27, 2026 election produced a fragmented Knesset, with Benjamin Netanyahu’s Likud securing the largest share at 27 seats but his broader bloc falling to 53 seats short of a majority. Gadi Eisenkot’s Yashar-led opposition bloc took 48 seats, while Arab parties captured a record 19. President Isaac Herzog awarded Eisenkot the mandate to form a government on November 8 after receiving 67 recommendations. Eisenkot has until mid-December to assemble a coalition or minority arrangement, with active talks focusing on haredi parties and possible unity options involving Likud. Both leaders are competing for ultra-Orthodox support amid disagreements over judicial reforms, military service, and security policy. The Knesset speaker vote scheduled for November 17 and the tight timeline create near-term pressure points that traders are monitoring closely for shifts in coalition viability.