Israel's inconclusive ballot in mid-September leaves no obvious path forward for the implementation of a U.S.-led peace plan.
Netanyahu, colloquially known as Bibi, denies wrongdoing.
"Certainly, the administration can't move forward until there is a new Israeli government in place. Then it will have to brief the new PM about what's in the plan and get his approval to publish it," Walles said . The U.S. plan is reportedly expected to address the question of a Palestinian state and the future status of the occupied West Bank, an issue that has remained unresolved since the 1967 war.
"This second election has been devastating in terms of stability and trust... But, a third election would be detrimental to the whole political system," Gayil Talshir, a political science professor at Jerusalem's Hebrew University, told CNBC via telephone.
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