Israel woke to a tense mix of political manoeuvring and security concerns this morning. With party representatives set to visit the President's residence this week to recommend a candidate for government formation, attention is also turning to renewed friction over Iran, economic warnings from credit agencies, and continued unrest both at home and abroad.

Politics

Faction representatives from the 26th Knesset are expected to arrive at the President's residence this week to recommend their candidate for forming the next government. Yisrael Beiteinu, which opposes sitting with Netanyahu but has not confirmed backing Gantz-aligned contender Gadi Eisenkot, and United Torah Judaism could prove decisive swing votes, with Arab party support for a change-bloc candidate also in question. Separately, opposition leaders are reportedly moving to oust Knesset Speaker Amir Ohana before a new government is formed, a step that has reportedly upset Arab party leaders who say they were excluded from the opposition's negotiations. Democrats leader Yair Golan said Netanyahu lacks the 'public trust' and 'moral legitimacy' to lead Israel through another confrontation with Iran, accusing him, along with Yoav Gallant and Itamar Ben Gvir, of occupying dangerous key positions, and called for a rapid formation of an alternative government.

Security

US President Donald Trump said, after speaking with Prime Minister Netanyahu, that Washington is ready to strike Iran's remaining nuclear sites within 'ten minutes' if needed, citing one or two outstanding targets including a site referred to as Pickaxe Mountain, adding that a plan is in place and could be executed swiftly. In Lebanon, fears are reportedly growing of a third round of conflict with Israel despite Hezbollah's assurances it will not intervene in any confrontation involving Iran, the US and Israel; Lebanese President Joseph Aoun is said to be wary after Hezbollah reneged on a similar pledge in March before joining the fighting. At home, ultra-Orthodox extremists blocked roads near the Tel Hashomer recruitment centre and a nearby neighbourhood in protest against conscription, with posters branding the induction office a 'soul incinerator'; police said reinforced units have been deployed, though residents complained the initial response was too small. Separately, police arrested a Rahat resident after an ATV stolen from the family of fallen Shin Bet officer Yossi Taher was located, the second such theft from the family since his death fighting near Kibbutz Mefalsim on 7 October; his widow Liat said the vehicles carry deep emotional value for their children.

International

More than 130 people were arrested outside the US Embassy in London during a protest in support of Palestine Action, organised by campaign group Defend Our Juries against the government's decision to proscribe the group as a terrorist organisation; expressing support for it is now an offence under the Terrorism Act. In the United States, Michigan Democratic Senate candidate Abdul El-Sayed clashed with former rival Haley Stevens, who criticised his rhetoric on Israel and an outside PAC advert blaming Israel for grocery prices, days ahead of a tight midterm race against Republican Mike Rogers that could help determine control of the Senate. In Illinois, local Jewish leaders are campaigning ahead of a symbolic ballot measure asking voters whether to oppose the state's anti-BDS law, which bars pension funds from investing in firms that boycott Israel. A US judge threw out President Trump's defamation suit against the Wall Street Journal and Rupert Murdoch over reporting on a letter linked to Jeffrey Epstein, ruling he failed to show the paper acted with malice. The FBI said North Korea was behind a major cryptocurrency heist, including the theft of $6.3 billion from Binance last week, with the exchange saying it holds enough Bitcoin reserves to cover 90% of the stolen assets.

Economy

Another credit ratings agency has warned that Israel's prolonged political crisis could harm its sovereign rating, citing risks from the weakening of judicial institutions, extended political paralysis and deteriorating international relations, even as growth forecasts were revised upward, partly reflecting Israeli companies' overseas activity rather than strength in the domestic economy. Business leaders echoed the concern, warning that instability from a narrow coalition would damage the economy and calling for the formation of a national unity government to restore stability and support small and medium-sized businesses.

Other Developments

Four minors from the Jerusalem neighbourhood of At-Tur were arrested on suspicion of throwing petrol bombs at Jewish homes in east Jerusalem; their remand has been extended until Wednesday. In Osafia, a man in his mid-20s, named as Amir Abu Hamda, 23, from Yirka, was shot dead; police have opened an investigation and believe the background is criminal. A new report highlighted that around a third of Arab youth in Israel – roughly 28% of the country's young population – are neither employed, studying nor in training, compared with about 11% of Jewish youth, with interviewees citing funding gaps, limited guidance programmes and fear of crime as barriers to leaving home. In Tehran, Iranian morality police raided several Halloween gatherings, resulting in mass arrests, though tens of thousands of young people were still reported to have taken to the streets in costume despite the crackdown.

Sources: Ynet, Walla, www.israelhayom.co.il, Times of Israel, Jerusalem Post