Israel election leaves no majority; stocks plunge as coalition talks loom

Israel's October 27 election produced no parliamentary majority, with Netanyahu's bloc winning 53 projected seats and Eisenkot's opposition alliance holding 48, neither reaching the 61-seat threshold needed to govern. The inconclusive result sparked sharp declines in Israeli stocks—the TA-35 fell 1.81 percent and the TA-125 fell 2.46 percent—amid investor concerns over political uncertainty, economic challenges, and potential renewed conflict with Iran. Coalition negotiations are expected to dominate Israeli politics for weeks, with Arab parties potentially holding the balance of power despite both major blocs rejecting formal partnerships with them.