Israel Holds General Election Amid War and Political Uncertainty

Israeli voters head to the polls this Tuesday for a general election with major international implications. This is the first vote since the October 7, 2023 attacks and the start of the joint military campaign between Israel and the United States against Iran in February.

The contest takes place in a climate of high tension and national mobilization. Thousands of citizens returned to the country to participate in the voting process. Israel's electoral system is based on proportional representation for the 120 seats in the Knesset.

Prime Minister Benjamin Netanyahu seeks to maintain power at the helm of the Likud party. His current coalition faces internal strain due to disagreements over a ceasefire in Gaza and the military conscription of ultra-Orthodox Jews. The opposition bloc is led by former military chief Gadi Eisenkot.

Recent polls show that neither major bloc has reached the 61 seats required to govern alone. The final outcome will depend on negotiations with smaller parties. The composition of the new government will define the course of the country's military and diplomatic strategy.

Geopolitical instability in the Middle East may increase risk aversion in global markets and pressure the dollar as a safe-haven asset. Rising uncertainty in conflict zones tends to trigger volatility in the prices of digital assets like Bitcoin.