Israel's Knesset passed the 2026 state budget on March 30, averting automatic dissolution under law that would have triggered snap elections within 90 days of the March 31 deadline, stabilizing Prime Minister Benjamin Netanyahu's coalition amid tensions over ultra-Orthodox military exemptions and coalition partner threats. Opposition no-confidence motions failed, preserving the minority government despite polls showing it short of a Knesset majority. With no major developments since the budget approval two weeks ago, legislative elections remain scheduled by October 27 under proportional representation, though fragile coalition dynamics, judicial probes, or escalation in ongoing conflicts could prompt a dissolution vote or early poll call. Traders weigh these risks against historical patterns of short-lived Israeli governments.