Netanyahu's grip weakens as key ally withholds support after Israel election deadlock

Israeli prime minister Benjamin Netanyahu suffered a another setback in his bid to retain power on Thursday after the ultra-Orthodox United Torah Judaism (UTJ) party declined to endorse any candidate to form the next government, while an Arab-led party backed his main rival Gadi Eisenkot.The developments have strengthened Eisenkot's position ahead of a crucial decision by Israeli president Isaac Herzog on whom to invite to form the next government, following the inconclusive October 27 election.Herzog was scheduled to meet Netanyahu and Eisenkot separately at his residence in Jerusalem on Thursday evening, concluding consultations with political parties that began a day earlier.

Under Israeli law, the president must nominate the lawmaker he believes has the best chance of forming a government, not necessarily the leader of the party that won the most seats.Netanyahu's Likud emerged as the single largest party with 27 seats in the 120-member Knesset.