Crisis at the Core: Netanyahu’s Coalition Collapses Amid War Pressure
Israeli PM Benjamin Netanyahu is facing a political crisis after the Shas party's exit from his coalition amid Gaza and Iran tensions. Here's why this shake-up matters for Israel and the world.
NewsSutra
On July 17, 2025, Israeli Prime Minister Benjamin Netanyahu found himself facing the most severe political crisis of his current term. As bombs fall in Gaza and military tension with Iran surges, his fragile governing coalition—already stretched by ideological divides—has begun to unravel. In a dramatic move, the ultra-Orthodox Shas party announced its withdrawal from the government, citing escalating violence, budgetary disputes, and growing discomfort with the direction of the war.
This shake-up does not just threaten Netanyahu’s hold on power; it has profound implications for Israel’s wartime strategy, internal political stability, and its relationships with allies, especially the United States. As war rages and alliances fracture, this moment is shaping up to be a defining test of leadership—not only for Netanyahu, but for Israel’s democracy under fire.
The Collapse of Coalition Consensus
The immediate cause of the collapse stems from a sharp policy disagreement between Netanyahu’s Likud party and the ultra-Orthodox Shas. While Shas has historically been a loyal partner in right-wing coalitions, it took issue with the government's emergency wartime policies, including military mobilizations affecting yeshiva students and sharp cuts to religious education budgets in favor of defense allocations.
According to Haaretz, Shas leader Aryeh Deri held Netanyahu personally responsible for “a betrayal of sacred commitments” made to Israel’s religious communities.
The result? A sudden collapse in parliamentary majority—shaking the foundation of Netanyahu's emergency unity government, which had included both ultra-Orthodox and far-right nationalist factions.
Why This Matters: Governance in Wartime
This isn’t a routine parliamentary squabble. The timing of Shas’s exit could not be worse.
Israel is in the middle of its most intense Gaza operation in over a decade. The IDF’s latest incursion into Rafah has drawn sharp international scrutiny, amid mounting civilian casualties and allegations of war crimes.
Meanwhile, Iranian proxies—including Hezbollah in Lebanon and militias in Syria and Iraq—have escalated cross-border attacks, sparking fears of full-scale regional war. Iran itself has vowed retaliation for a suspected Israeli airstrike that nearly assassinated President Masoud Pezeshkian on July 16, an event which Al Jazeera reported as a “declaration of war.”
In this context, Netanyahu’s leadership is no longer just about domestic politics—it is central to Israel’s national survival.
U.S. Watches Closely
Washington is watching with growing concern. President Donald Trump, now in his second term, has called for “firm leadership in Jerusalem,” but has reportedly expressed frustration over Israel’s growing instability.
According to a Reuters briefing, White House officials are worried that a fractured Israeli cabinet may struggle to coordinate effectively on military strategy, humanitarian corridors, and regional de-escalation plans.
The U.S. continues to supply arms and intelligence support to Israel, but behind the scenes, it has begun reaching out to opposition leaders like Benny Gantz and Yair Lapid to “evaluate all future governing scenarios,” sources close to the administration say.
The Political Domino Effect
With Shas out, Netanyahu’s coalition now holds just 58 seats, three short of a parliamentary majority. His far-right allies—Bezalel Smotrich (Religious Zionism) and Itamar Ben-Gvir (Otzma Yehudit)—have pledged loyalty, but they lack broad public trust and international legitimacy.
This power vacuum opens several possibilities:
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A snap election, which would be Israel’s sixth since 2019.
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A no-confidence vote, if opposition parties unite.
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A technocratic emergency government, led by a neutral figure—a move floated by the centrist Yesh Atid party.
For now, Netanyahu has vowed to hold on. In a fiery Knesset address, he accused “leftist elites and foreign-funded NGOs” of attempting to overthrow a democratically elected government “in the middle of a war.”
Public Opinion: A Country at Odds
Israelis are divided. While some view Netanyahu’s resilience as a sign of strong leadership under fire, others see a prime minister who is out of touch, increasingly isolated, and unable to unify the nation in its hour of need.
A Channel 13 poll published July 17 shows Netanyahu’s approval rating at just 29%, a 14-point drop since May.
Ultra-Orthodox communities have begun staging protests in Jerusalem over military service requirements, while secular Israelis are rallying against what they call “religious blackmail” in politics.
These divides—religious vs. secular, nationalist vs. liberal—are not new. But in the context of war, they have become existential.
International Repercussions
The political instability in Israel is also rippling across the region. Iran has seized on the moment to declare that Israel is "internally collapsing," a message echoed by Hezbollah leader Hassan Nasrallah in a recent speech.
Palestinian factions, including Hamas and Islamic Jihad, believe Netanyahu’s weak government may hesitate before launching new offensives—emboldening them to continue rocket attacks and tunnel raids.
Arab Gulf states, many of whom normalized relations with Israel under the Abraham Accords, are now cautiously reevaluating their stance. The UAE, in particular, has issued diplomatic statements calling for “restraint and political stability” in Israel—a clear signal that the Emirates may limit cooperation if Israel descends further into domestic turmoil.
The Bigger Picture: What This Signals for Middle East Stability
Israel has long positioned itself as a pillar of regional stability and the U.S.'s closest ally in the Middle East. Netanyahu’s unraveling coalition threatens that narrative.
The simultaneous convergence of:
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domestic political collapse,
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regional war against Hamas and Hezbollah,
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and escalating tensions with Iran
...has created a geopolitical powder keg.
If Israel is no longer seen as a stable, functional democracy, it may lose its ability to lead diplomatically, deter adversaries, and maintain unity with the West. That would change the strategic calculus for every major player in the region—from Tehran to Riyadh, and from Cairo to Washington.
Conclusion
Benjamin Netanyahu's coalition crisis is more than a parliamentary drama—it is a crisis of national leadership at a time of war. With regional fires burning and global eyes watching, Israel must decide whether to rebuild unity or risk unraveling from within.
The coming days will determine whether Netanyahu can survive politically, and whether Israel can continue to project strength in an increasingly unstable Middle East.
