Prime minister claims Arab Israeli parties used foreign backing to steal elections, in which his coalition lost its majority

Benjamin Netanyahu has been accused of using smear tactics to cling to power, after he claimed that Arab Israeli parties had used foreign backing to “steal” Tuesday’s election, in which the prime minister’s coalition lost its parliamentary majority.

Netanyahu and his allies called on the internal security service, Shin Bet, to investigate alleged vote buying and other irregularities in Palestinian communities in Israel, supposedly funded by foreign money.

Projections show votes for Palestinian parties surged in a tight contest that drew highest turnout in decades

• Israel election results – live updates

• Analysis: Rise of Palestinian parties in Knesset will redraw Israel’s political landscape

Israel’s future hung in the balance on Wednesday as it became clear that Benjamin Netanyahu had lost his governing majority. His political fate now depends on whether opposition Jewish parties are prepared to forge a common front with Palestinian parties, whose support surged in Tuesday’s elections.

The leader of the Jewish opposition bloc, the retired general Gadi Eisenkot, appeared to rule out such a broad coalition in a premature declaration of victory overnight for what he called a “Zionist majority”.

Early indications suggest it will be some time before the shape of new government and who will lead it is clear

• Israel election – live updates

• Israel election: what we know so far

• Rise of Palestinian parties in Knesset will redraw Israel’s political landscape

Israel’s election appeared to have delivered no clear winner on Tuesday night after a historic turnout by voters for an election described by some as the most consequential in the country’s history, and marked by a record participation by Israeli Arab voters.

Exit polls published on Tuesday evening suggested that the opposition bloc of parties led by the former chief of staff of the Israel Defense Forces, Gadi Eisenkot, would win most seats in the Knesset by a slight margin, edging out Benjamin Netanyahu’s right and far-right coalition despite the prime minister’s Likud emerging as the largest party.