In a significant shift within Israeli politics, Rabbi Yitzhak Yosef, spiritual leader of the Shas party, has expressed openness to joining a government led by Gadi Eisenkot, indicating dissatisfaction with Prime Minister Benjamin Netanyahu. Rabbi Yosef’s remarks suggest a potential realignment as the 2026 Israeli legislative election approaches, with the ultra-Orthodox Mizrahi party possibly moving away from Netanyahu’s coalition. This development emerges from Shas’s disappointment over Netanyahu’s stance on ultra-Orthodox conscription into the IDF, a contentious issue that led to Shas quitting the government in 2025. Eisenkot, a former IDF Chief of Staff and leader of the centrist Yashar! party, is seen as a top challenger to Netanyahu, advocating for national unity.
The market’s reaction to this political development appears to suggest increased instability for Netanyahu’s leadership. Current odds in the “Netanyahu out by end of 2026?” market reflect a 36% chance of his departure by the year’s end, down from 38% a day earlier, indicating some uncertainty but consistent with the notion of potential change. The possibility of Shas joining Eisenkot’s coalition could exacerbate fragmentation in Netanyahu’s right-wing bloc, potentially affecting his ability to maintain a majority.
