(MENAFN- The Peninsula) Israel's president was on Wednesday to task Benjamin Netanyahu with forming the next government after a shock election victory that exposed deep divisions with key ally Washington.
President Reuven Rivlin was to formally hand the task to Netanyahu after he secured enough support from his rightwing and religious allies to form a coalition, guaranteeing himself a third consecutive term as prime minister.
Netanyahu's victory last week dramatically exacerbated a diplomatic crisis with Washington, bringing his thorny relationship with US President Barack Obama into sharp focus.
In a bid to ramp up votes, Netanyahu veered sharply to the right, vowing there would be no Palestinian state on his watch, promising to increase settlement construction and warning that Arab Israeli voters were going "in droves" to the polls.
Although it secured Netanyahu a surprise win, with his rightwing Likud taking 30 of parliament's 120 seats, it appears to have cost him dearly on the diplomatic front, with Washington sparing no effort to make its displeasure known.
"The issue is a very clear, substantive challenge," Obama said of his disagreement with Netanyahu over the Israeli-Palestinian conflict.
"We believe that two states is the best path forward for Israel's security, for Palestinian aspirations and for regional stability... Prime Minister Netanyahu has a different approach."
His remarks were welcomed by the Palestinians.
"The US is finally coming to the realisation that Israeli actions are no longer acceptable," said senior Palestinian official Hanan Ashrawi.
"It is time for the US government to translate its statements into action and reconsider its unquestioning support of Israel and its military aid to Israel."
In an apparent bid to calm tensions, Netanyahu reportedly froze plans for further construction in annexed east Jerusalem, the Ynet news website reported.
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