Israeli President Isaac Herzog on Sunday handed opposition leader Gadi Eisenkot the first chance to form a government, after an election that left neither Prime Minister Benjamin Netanyahu’s bloc nor Eisenkot’s with a majority. The shekel traded firmer early on Monday, ahead of the first Tel Aviv session since the mandate.
MoneyTurkey Politics Desk | 9 November 2026
Key points
- Eisenkot, a former military chief who leads the Yashar party, was recommended by 67 incoming lawmakers; Netanyahu was backed by 46, and United Torah Judaism’s seven made no recommendation.
- He has 28 days to form a coalition, and Herzog can extend that by up to 14 days.
- The dollar was at 3.1707 shekels at about 6:10am London time, down from 3.2005 on Friday, which leaves the shekel about 0.9% stronger.
- Tel Aviv’s TA-35 index closed Friday up 3.1% at 3,941.14, after falls on Wednesday and Thursday.
What happened
Herzog formally gave Eisenkot the mandate at a ceremony at the President’s Residence in Jerusalem on Sunday evening, a day after announcing his decision. He said Eisenkot had the clear support of a majority of lawmakers on who was best placed to win a confidence vote, even though Netanyahu’s Likud remains the largest single party with 27 seats, The Jerusalem Post reported.
The 27 October election left Netanyahu’s bloc with 53 seats and the opposition bloc with 48 in the 120-seat Knesset. The Arab-led parties Ra’am and the Joint List won a combined 19 seats. Both recommended Eisenkot, though that does not commit either to joining his government.
Eisenkot said the country was in a state of emergency and called for a national emergency government, which he said would require “creative and unconventional political steps”, according to The Washington Post. He has said such a government could include Likud. Ynetnews reported that he does not plan to swear in a government this week, even if he reaches a deal sooner.
The market angle
The shekel was the clearest early read. The dollar slipped to 3.1707 shekels in early Monday trade from 3.2005 at Friday’s close, according to Yahoo Finance data. There is no direct evidence tying that move to the mandate, and the shekel had already swung sharply last week.
Tel Aviv shares go into Monday after a choppy week. The TA-35 dropped on Wednesday and Thursday, to 3,823.18, then rebounded 3.1% on Friday. The broader TA-125 closed Friday at 3,823.63. Monday’s open is the first chance for local equities to price the formal handover.
For investors, the main question is whether a long coalition hunt keeps a caretaker government in place. Under Israeli law, if Eisenkot fails, Herzog can hand the mandate to a second candidate, who would get 28 days with no extension. If that also fails, lawmakers get a further window before the Knesset dissolves and another election is called.
What to watch
- Whether Likud or the ultra-Orthodox parties respond to Eisenkot’s call for an emergency government
- Whether Ra’am or the Joint List offer formal support beyond their recommendations
- The shekel and the TA-35 at Monday’s Tel Aviv open
- Any request for the 14-day extension
For information only. Not investment advice.
Sources
- Associated Press: https://apnews.com/article/israel-elections-netanyahu-eisenkot-bec07675825bee5895315e2ea1cb5751
- The Jerusalem Post: https://www.jpost.com/israel-election-2026/article-914236
- The Times of Israel: https://www.timesofisrael.com/president-herzog-taps-eisenkot-to-form-coalition-but-path-remains-fraught/
- Ynetnews: https://www.ynetnews.com/article/sjygemraml
- The Washington Post: https://www.washingtonpost.com/world/2026/11/08/israel-gadi-eisenkot-accepts-mandate-form-government-urges-netanyahu-ouster/
- Reuters: https://www.reuters.com/world/middle-east/netanyahu-rival-eisenkot-seeks-wide-government-path-power-uncertain-2026-11-08/
- Anadolu: https://aa.com.tr/en/middle-east/israeli-president-tasks-eisenkot-with-forming-new-government/4116158
- Yahoo Finance (USD/ILS, TA-35): https://finance.yahoo.com/quote/ILS%3DX/
