Following the October 27, 2026, Knesset election, neither Benjamin Netanyahu’s right-wing and ultra-Orthodox bloc (53 seats) nor Gadi Eisenkot’s opposition grouping (48 seats) reached the 61-seat majority needed for a coalition, while Arab-led parties hold a record 19 seats. President Isaac Herzog will assign the first mandate by November 11 after official results, granting the nominee 28 days plus a possible 14-day extension to negotiate. Deep ideological divides, reluctance to partner with Arab parties, and Netanyahu’s caretaker status leave formation paths narrow, including potential minority arrangements or cross-bloc deals. Traders’ near-even split between one and two elections reflects uncertainty over whether these constraints produce a government before the process triggers dissolution and a new vote in early 2027.