**Recent developments center on Prime Minister Netanyahu’s August 27–28, 2026 public call for Bezalel Smotrich (Religious Zionism Party) and Itamar Ben-Gvir (Otzma Yehudit) to form a joint electoral list ahead of the October 27 Knesset election.** Netanyahu argued that unity would prevent wasted right-wing votes below the 3.25% threshold, citing historical precedent where separate runs hurt the bloc. He invited both leaders to meetings and framed a merger as essential for the right-wing majority. Ben-Gvir rejected the proposal immediately and unequivocally. Otzma Yehudit declared the decision “final and complete,” ruling out any negotiations, meetings, or technical blocs with Smotrich’s party. Ben-Gvir cited polling data showing a joint list would cost his party 3–4 seats by alienating core voters, while a standalone Otzma Yehudit slate preserves broader appeal. He has maintained this position since at least June 2026, emphasizing the parties’ distinct electorates. Smotrich has signaled greater openness to unity or responsibility within the nationalist camp, and his party faces greater threshold risk in recent polls (sometimes projected below it when facing competition from Ofer Winter’s new list). However, Ben-Gvir’s firm stance and the parties’ prior split after their 2022 technical merger make agreement improbable. List submission deadlines are imminent, leaving little time for reversal. These explicit public positions and divergent strategic incentives explain the market’s strong “No” pricing, reflecting trader assessment that separate lists are the near-term baseline absent a major, unexpected shift.