Netanyahu set to remain caretaker prime minister after inconclusive Israeli election

Benjamin Netanyahu appeared likely to remain Israel’s caretaker prime minister after Tuesday’s parliamentary election left both major blocs short of a governing majority.

With nearly 86% of ballots counted Wednesday, Israel’s three main broadcasters projected Netanyahu’s alliance of right-wing, far-right and ultra-Orthodox parties would secure 53 seats in the 120-seat Knesset. The opposition bloc led by Gadi Eisenkot was projected to take 48 seats, while parties representing Arab Israelis were expected to win 19.

The projections leave Netanyahu’s bloc below the 61 seats required for a majority. Eisenkot also faces a difficult route to power because forming a government would require broad support from Arab parties, an arrangement rejected by several Jewish political leaders. The results remained subject to change as counting continued.

Netanyahu called for the formation of “a strong, right-wing national government” and raised the possibility of further joint Israeli-US action against Iran. Eisenkot acknowledged that Netanyahu would remain caretaker prime minister but cautioned state security and civil-service officials against the political use of security policy.

US President Donald Trump, who endorsed Netanyahu before the vote, claimed his intervention had helped reverse a possible defeat. Pre-election polls had suggested neither Netanyahu nor the opposition was likely to win an outright majority.

If coalition negotiations fail, Netanyahu could continue leading a caretaker government until another election. Israeli markets fell as the inconclusive result emerged, with the shekel weakening and major Tel Aviv stock indexes dropping more than 3%.