Israel's Knesset remains intact under Prime Minister Benjamin Netanyahu's coalition, clinging to a razor-thin 61-seat majority following Benny Gantz's National Unity party exit from the war cabinet in June over Gaza strategy disagreements. Recent tensions peaked in late June when ultra-Orthodox (haredi) parties threatened collapse amid a contentious military draft exemption bill, which passed narrowly but exposed deep rifts. No dissolution vote has advanced since an opposition bill introduced October 29 failed to gain traction. Traders eye the March 2025 state budget deadline—failure triggers automatic dissolution—as the key risk, alongside ongoing Gaza ceasefire talks and haredi enlistment disputes that could prompt no-confidence votes or snap elections before the October 2026 mandate expiry.