Israeli President Isaac Herzog has reportedly given former army chief Gadi Eisenkot the mandate to attempt forming a new government, a development that could end Benjamin Netanyahu's long tenure as prime minister. The transmission channel for markets runs mainly through political risk premia and policy expectations, since a change in leadership alters the outlook for fiscal spending, defense budgets, judicial reform, and relations with major Western partners that shape sovereign risk pricing. Israeli government bonds and the shekel are the most directly exposed, as investors reassess the probability of policy continuity versus a shift in coalition priorities, while domestic equities, particularly banks and infrastructure names sensitive to government contracts, may reprice on the same expectations. Traders should watch whether Eisenkot can assemble a viable coalition within the mandate window, as a credible path to a majority would likely compress political risk premia further, whereas a failed attempt could revert the market to a prolonged period of uncertainty.
End Of Netanyahu Era? Ex-Army Chief Gadi Eisenkot gets mandate to form Israel govt
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