Israel's Knesset passed its 2026 state budget on March 30, averting automatic dissolution required under law if approval fails by March 31, stabilizing Prime Minister Benjamin Netanyahu's fragile coalition amid ongoing Gaza operations and tensions with Iran. Opposition parties like Yesh Atid and Blue and White submitted dissolution bills in January ahead of the vote, but coalition partners backed the budget despite criticisms over ultra-Orthodox funding and judicial overhaul pushes continuing into the spring recess. Iranian missile strikes in late March interrupted sessions, heightening instability. Traders weigh persistent coalition drama, potential no-confidence votes, and voluntary early elections before the scheduled October 27 deadline against recent legislative successes, reflecting low near-term dissolution risk.