Final results in Israel's election show the moderate Kadima Party has one more seat in the new parliament than Benjamin Netanyahu's hawkish Likud.
Kadima won 28 and Likud 27 in the 120-seat parliament.
But the parliament has a majority among hard-line parties, making it easier for Netanyahu to form the next government and take over as prime minister.
Netanyahu opposes talks on a peace treaty with the Palestinians. That could put him in conflict with the Obama administration.
Kadima leader Tzipi Livni, who is the current foreign minister, is also trying to attract coalition partners.
One possibility is a joint government, potentially with Netanyahu as prime minister and Livni and her party receiving key government ministries.
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