TEL AVIV, Israel >> Israeli Prime Minister Benjamin Netanyahu suffered a major political blow Wednesday as a key governing partner announced it was quitting his coalition government, leaving him with a minority in parliament as the country faces a litany of challenges.

Shas, an ultra-Orthodox party that has long served as kingmaker in Israeli politics, announced that it would bolt the government over disagreements surrounding a proposed law that would enshrine broad military draft exemptions for its constituents — the second ultra-Orthodox governing party to do so this week.

“In this current situation, it’s impossible to sit in the government and to be a partner in it,” Shas Cabinet minister Michael Malkieli said in announcing the party’s decision.

But Shas said it would not undermine Netanyahu’s coalition from the outside and could vote with it on some legislation, granting Netanyahu a lifeline in what would otherwise make governing almost impossible and put his lengthy rule at risk.

Once their resignations come into effect, Netanyahu’s coalition will have 50 seats in the 120-seat parliament.

No immediate collapse

Netanyahu’s rule, for now, doesn’t appear threatened. Once Shas’ resignations are put forward, there’s a 48-hour window before they become official, which gives him a chance to salvage his government.

Netanyahu’s Likud party did not immediately comment on Shas’ departure.

The party’s announcement also comes just before lawmakers recess for the summer, granting Netanyahu several months of little to no legislative activity to bring the parties back into the fold with a possible compromise on the draft law.

But if the coalition isn’t shored up by the time the Knesset reconvenes in the fall, it could signal that Israel may be headed to early elections, scheduled for October 2026.

The political instability comes at a pivotal time for Israel, which is negotiating with Hamas on the terms for a U.S.-backed ceasefire proposal for Gaza.