Israel's future governance is still up in the air, with parties on all sides falling short of the required 61 seats.  

With most votes counted, Benjamin Netanyahu's holding a narrow lead over rival Gadi Eisenkot, with 53 seats to 48. 

The Arab parties have surged to a record 19.  

ABC News Middle East correspondent Matthew Doran told Mike Hosking we could see parties from either bloc break away to form a coalition.  

He says there's already speculation of Netanyahu trying to form a unity government with Eisenkot, who's campaigned for most of the year for him to go. 

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