Israeli Prime Minister Benjamin Netanyahu's coalition government faces a critical test with the Knesset vote on the 2026 budget due by March 31, as failure would trigger an automatic snap election under Israeli law. Ongoing military operations against Iran, including recent U.S.-backed strikes and threats to Iran's leadership, have rallied national support around Netanyahu despite pre-war polls showing his right-wing bloc falling short of a Knesset majority at around 50 of 120 seats. Ultra-Orthodox exemptions from military conscription remain a flashpoint, exacerbating coalition tensions, while opposition leaders push no-confidence motions amid war fatigue. Traders weigh short-term stability from wartime unity against risks of budget gridlock or post-conflict backlash, with early elections speculated if the government survives the deadline.