Netanyahu leads Eisenkot in race to form Israeli government

Israeli Prime Minister Benjamin Netanyahu and opposition leader Gadi Eisenkot are locked in a tight race to form Israel's next government, with both parties expressing confidence in their ability to secure a majority. Netanyahu's right-wing religious alliance is projected to win 53 seats in the 120-member parliament, while Eisenkot's bloc trails behind with an expected 48 seats.

However, a surge in Arab vote has ensured neither candidate has a clear path to forming a government. The two Arab parties almost doubled their projected number of seats to 19, giving them the potential power to decide the next leader. Both Netanyahu and Eisenkot have confidence in their chances, but it could be days before President Isaac Herzog appoints the next leader.

Should neither succeed, another election could be held in several months. Israeli assets have been affected by the election uncertainty, with the shekel depreciating against the dollar and the Tel Aviv stock index falling 5%. Israeli Arab parties are expected to support Eisenkot in forming a government, but not Netanyahu. Eisenkot has expressed an opportunity to form a minority government with the support of the Arab parties, while Netanyahu's Likud party has ruled out negotiations with the Arab parties.

Netanyahu, a 77-year-old rightist, appeared jubilant after claiming his bloc has a "clear, decisive majority." Eisenkot, a 66-year-old former general, described Netanyahu's current far-right government as "the coalition of failure" that had "lost the people's trust."