Israel Holds Decisive Elections Amid Tight Race

Israel began its electoral process this Tuesday to determine the composition of the Knesset. About 7.3 million citizens are eligible to vote in a contest taking place three years after the attack on October 7, 2023. The election is considered one of the most important in the country's recent history.

Polls show a tight race between Prime Minister Benjamin Netanyahu's coalition and the opposition bloc led by Gadi Eisenkot. The parliamentary system requires a group to reach 61 of the 120 available seats to secure a majority. The absence of a clear winner could prolong the process of forming a new government.

Polling stations close at 10 p.m. local time. Television networks are expected to release exit polls immediately after the polls close. However, the official vote count may take days or even weeks if no party secures an absolute majority.

The Prime Minister faces internal questions regarding the conduct of the war in Gaza and the management of hostages. Furthermore, the government is dealing with rising tensions in the West Bank and conflicts with neighboring countries. The official publication of the results is scheduled for November 4.

Political instability in Israel increases risk aversion in global markets. This may pressure the dollar as a safe-haven currency and affect the volatility of assets like Bitcoin.