Netanyahu faces government formation challenge after election seat gains

What happened

Netanyahu’s Likud-led bloc won the most seats in the general election, but it still faces a battle to form a government. The outcome does not yet give a clear policy result.

Why it matters

For India, the main channel is risk sentiment and energy prices. Any political uncertainty in the Middle East can keep crude sensitive, and that can affect inflation, the rupee, and sectors that use fuel heavily.

Global impact

World markets usually treat Israeli political uncertainty as a regional risk only if it feeds into broader Middle East tension. If the situation stays political and contained, the global market effect is often limited.

How the story broke

1. 4 Nov, 2:49 AM ISTNetanyahu’s eight-seat problemAl Jazeera

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