The October 27, 2026, Knesset election produced a fragmented outcome, with Netanyahu’s Likud-led bloc securing 53 seats and Eisenkot’s opposition bloc at 48, both short of the 61-seat majority in the 120-seat parliament, while Arab parties (Joint List and Ra’am) gained to 19 seats amid record turnout near 78%. This balance reflects voter shifts that boosted Arab representation without delivering gains sufficient for either Jewish bloc to form a government independently. Deep ideological divides—opposition parties’ refusal to join Netanyahu or rely on Arab support—limit coalition paths, including unity arrangements or minority governments, sustaining trader uncertainty. Upcoming steps, such as President Herzog’s assignment of formation talks after official results on November 4 and the 28-day mandate period, could tip odds if negotiations succeed or collapse into new elections.