Israeli Assets Slide as Election Leaves Blocs Short of 61-Seat Majority
Updated
Updated · CNBC · Oct 28
Israeli Assets Slide as Election Leaves Blocs Short of 61-Seat Majority
3 articles · Updated · CNBC · Oct 28
Summary
The shekel fell 1%, the Tel Aviv 35 dropped 2.7%, and Israeli bond yields rose after partial results showed no camp on track for a governing majority.
With more than 66% of ballots counted, Benjamin Netanyahu's bloc was projected at 56 seats and Gadi Eisenkot's at 48, while Arab-led parties held a potential 16-seat balance in the 120-seat Knesset.
That arithmetic points to difficult coalition talks because governments need 61 seats, and key opposition figure Avigdor Liberman has ruled out relying on Arab parties.
Turnout reached 77.7%—the highest in 27 years—in Israel's first election since the Oct. 7, 2023 Hamas attack and the wars in Gaza, Lebanon and Iran.
Final results are due Nov. 4, but analysts already warn of prolonged negotiations and possible delays that could help Netanyahu, whose past stalemates kept him in office through five elections from 2019 to 2022.