Rabbi Yitzhak Yosef open to coalition with Eisenkot, signaling Netanyahu rift

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.

Key Takeaways

• Rabbi Yitzhak Yosef’s openness to a coalition with Eisenkot appears to reflect dissatisfaction with Netanyahu’s policies, suggesting potential instability in the current government.
• Market pricing suggests a 36% likelihood of Netanyahu being ousted by the end of 2026, consistent with the possibility of coalition shifts.
• The potential realignment involving Shas and Eisenkot could indicate growing challenges for Netanyahu’s leadership amidst upcoming elections.

What to Watch

Watch for further statements from Shas or Eisenkot that could clarify coalition intentions or policy agreements, which may influence market perceptions of Netanyahu’s tenure. Observers should also monitor any moves by Netanyahu’s current coalition partners that might indicate shifts in their support, as these could impact his ability to govern effectively. Any announcements regarding conscription policy changes or related legislative actions could also serve as key indicators of political alignment and stability.

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Disclosure: This article was edited by Estefano Gomez. For more information on how we create and review content, see our Editorial Policy.