Israel election ends without a clear winner
Projections based on nearly 86 percent of votes give Benjamin Netanyahu's bloc 53 seats in the 120-seat Knesset, short of a majority, against 48 for Gadi Eisenkot's bloc. Netanyahu stays caretaker prime minister during coalition talks.
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Arab parties are projected to win 19 seats, which is an unprecedented figure. The projections could still change as counting continues. The vote was Israel's first election since the attack of 7 October 2023.
Markets reacted. The shekel weakened about 1.6 percent to 3.10 to the dollar, and Tel Aviv's key indexes fell by more than 3 percent.
Guy Lurie of the Israel Democracy Institute said a caretaker government has the same formal powers as a regular one but a duty of restraint. That includes powers over the war with Iran. Israeli security experts say the result could let Netanyahu launch a new bombing campaign against Iran with the US.
Netanyahu has spoken of a "singular historical opportunity" for joint action with US President Donald Trump. Eisenkot warned that Netanyahu might use security for political ends. Netanyahu's office has rejected earlier accusations that he uses the Iran conflict for political gain.