The United States has remanded Israeli Prime Minister Benjamin Netanyahu following his re-election victory for abandoning his commitment to negotiate for a Palestinian state and for what it called "divisive" campaign rhetoric toward Israel's minority Arab voters.
Even as US President Barack Obama's administration congratulated Mr Netanyahu for his party's decisive win in yesterday’s election, the White House signalled its deep disagreements with Mr Netanyahu will persist on issues ranging from Middle East peacemaking to Iranian nuclear diplomacy.
In a hard-right shift in the final days of campaigning, Mr Netanyahu backtracked on his support for eventual creation of a Palestinian state - the cornerstone of more than two decades of peace efforts - and promised to go on building Jewish settlements on occupied land.
Such policies could put him on a new collision course with Mr Obama’s administration. Some Obama aides had privately left little doubt during the Israeli election campaign of their preference for Mr Netanyahu's centre-left challenger, Isaac Herzog.
White House spokesman Josh Earnest has reaffirmed Mr Obama's commitment to a two-state solution to the Middle East conflict and said that based on Mr Netanyahu's comments, "the United States will evaluate our approach to this situation moving forward."
Mr Netanyahu's insistence that there will be no Palestinian state while he holds office angered Palestinians and drew criticism from the United Nations and European governments.
Earlier today, opposition leader Isaac Herzog conceded defeat today in the country's general election and said he had congratulated Benjamin Netanyahu on his win.
"A few minutes ago, I spoke with the prime minister and I congratulated him on his achievement and wished him good luck," the head of Israel's Labour Party said.
Mr Netanyahu hopes to form a new government within weeks after defying the polls to seal a clear election win, his Likud party said.
The party said Mr Netanyahu had already spoken overnight with the leaders of smaller parties he saw as likely coalition partners.
With around 70% of votes counted in the election, Likud was leading early today with nearly 24% of the vote, the Central Elections Committee said.
The Zionist Union was trailing with 19%, the committee's website said.
Mr Netanyahu claimed victory yesterday, and the initial results seemed to ensure him a third straight term, likely to further strain relations with the Palestinians.
Exit polls published on two TV stations as polling stations closed had given Likud and Zionist Union 27 seats each in the 120-member parliament.
A third poll gave Likud a one-seat lead.
Mr Netanyahu had put security at the forefront of his campaign.
He argued that he is the only one capable of protecting Israel from an Iranian nuclear threat and vowed never to allow the Palestinians to establish a capital in east Jerusalem.
The Palestinians vowed to step up their diplomatic campaign for statehood.
"It is clear that Prime Minister Benjamin Netanyahu will form the next government, so we say clearly that we will go to the International Criminal Court in the Hague and we will speed up, pursue and intensify" all diplomatic efforts, chief negotiator Saeb Erakat told AFP.