Netanyahu Retains Power in Israel Despite Deadlocked Election

Projections from three major television networks in Israel reveal that Prime Minister Benjamin Netanyahu may retain power despite losing his majority in elections.

With 86 percent of votes counted, Netanyahu’s right-wing bloc secured 53 seats against 48 seats for Gadi Eisenkot’s opposition alliance. Simultaneously, Arab minority parties achieved a historic record by capturing 19 seats in the 120-member Knesset.

Numerically, Netanyahu’s opponents control a combined 67 seats, exceeding the 61 needed to govern. Deep ideological divisions prevent the opposition from forming a cohesive coalition. This gridlock creates a political paradox where Netanyahu remains caretaker prime minister, potentially delaying new elections until April 2027.

Rightward shift limits opposition breakthrough

The final vote count upturned pre-election polling that predicted a neck-and-neck race.
Netanyahu’s ruling coalition dropped from 64 to 53 seats, yet outperformed initial exit poll projections.

Eisenkot’s diverse alliance failed to secure the decisive victory they anticipated. This election highlights a deeper rightward shift among Jewish voters after years of Netanyahu’s dominance.

The center-left has shrank significantly, and most major Jewish parties now share Netanyahu’s national security views. For instance, nearly all mainstream Jewish factions reject the prospect of an independent Palestinian state. Consequently, this leadership battle focuses primarily on governance rather than peace strategies.

Arab voter surge alters parliamentary math

A massive 77.7 percent voter turnout mobilized Arab citizens, who comprise over one-fifth of the population.
This historic participation boosted the Joint List and Ra’am alliances to a record 19 seats. The opposition now has no realistic path to power without the support of these lawmakers.

This high turnout reflects a sharp backlash against discriminatory rhetoric from members of Netanyahu’s cabinet. However, structural barriers still prevent Arab parties from formally joining a ruling coalition. Joint List leader Ayman Odeh stated his bloc will help depose Netanyahu but rules out direct cabinet participation. Instead, Odeh suggested supporting an alternative minority government from the outside.

Security mandate and financial volatility

This prolonged political uncertainty after elections instantly triggered severe volatility across financial markets in Israel.

The Israeli shekel dropped 1.6 percent to trade at 3.10 shekels per US dollar. Concurrently, main stock indices in Tel Aviv posted sharp losses exceeding 3 percent. Despite his caretaker status, Netanyahu retains sweeping executive authority over critical national security operations.

Speaking to Likud supporters at 3:00 AM on Wednesday, Netanyahu demanded a strong right-wing national government. He claimed Israel and the US hold a unique historic opportunity to eliminate the Iranian threat. Opposing this, Eisenkot warned that Netanyahu lacks a public mandate and urged security chiefs to resist political exploitation.

Controlling the Knesset without a cabinet

The opposition plans to exploit its numerical majority to seize control of the Knesset speaker position.
This tactical move would allow anti-Netanyahu forces to launch legislative initiatives from the parliamentary floor.

Factions aim to establish a national commission of inquiry into the October 7, 2023 security failures. This strategy could create an unusual dynamic where Netanyahu runs the cabinet while his opponents control parliament.

President Isaac Herzog has initiated urgent consultations to prevent a complete collapse into another election cycle. Herzog urged all faction leaders to approach negotiations with a compromise mindset. If these talks fail, Netanyahu will remain premier until voters return to the polls in 2027.