Netanyahu remains Israel’s caretaker prime minister following the inconclusive October 27, 2026, Knesset election, in which his right-wing bloc secured 53 seats and the main opposition bloc 48, leaving neither with the 61-seat majority required to form a government. Coalition negotiations are underway under President Herzog, with options including a unity government, inclusion of Arab parties, or a fresh election as early as 2027. Netanyahu’s incumbency provides procedural advantages during talks, while ongoing security operations against Iran and related conflicts continue to shape domestic political dynamics. Traders assess these factors when pricing timelines for his departure, with market resolution triggered by official announcements or confirmed removal from office.