Netanyahu faces crisis as another key coalition partner exits Israeli government

Israeli Prime Minister Benjamin Netanyahu suffered a major political setback on Wednesday after a key ultra-Orthodox party announced its exit from the coalition government, leaving him with a minority in parliament. This comes as the country faces volatile challenges amid heightened tensions in the Middle East. Shas said that it would quit the government over a long-standing disagreement over military draft exemptions. Although the party has suggested it may still support certain legislation from the outside.

“In this current situation, it’s impossible to sit in the government and to be a partner in it,” Shas Cabinet minister Michael Malkieli said, announcing the party’s decision, news agency AP reported. Shas said that it would not undermine Netanyahu’s coalition from the outside and may vote with it on some legislation. After the resignations come into effect, Netanyahu’s coalition will have 50 of the total 120 seats in parliament.

The move marks the second ultra-Orthodox governing party to do so this week. Earlier on Tuesday (Jul 15), the United Torah Judaism announced that they will quit the government over the same issue.

Is Netanyahu’s government at risk of collapse?

After Shas’ resignations are put forward, Netanyahu still has a chance to salvage the government in the 48-hour window before they become official.

The development also comes before the lawmakers’ recess for the summer. This grants the Israeli prime minister several months of little to no legislative activity, giving him a chance to bring the parties back into the government with a possible compromise on the draft law.

However, if the coalition does not hold up by the time the Knesset reconvenes in the fall, Israel may be forced to hold early elections, which are originally scheduled for October 2026.

The political crisis comes when Israel is negotiating with Hamas to settle terms for a US-backed ceasefire proposal for Gaza. Shas’ exit is not expected to hinder the ongoing talks. However, this puts additional pressure on Netanyahu to appease his other governing allies, including the influential far-right flank, which has threatened to quit the government should the 21-month war in Gaza end with Hamas intact.

In addition to the recent challenges, Netanyahu is currently on trial over allegations of corruption, with critics accusing him of abusing his power.