With exit polls giving the centrist party Kadima a one seat lead of centre right Likud,both parties are claiming victory in the Israeli election.
It is a victory of sorts for Tzipi Livni's Kadima who have been trailing in the run up to polling day
However the strong showing of other right wing parties means that Livni will find it difficult to form a government.
The complicated proportional representation system means that it could be more than a month before we know the full shape of the countries next government.
As it stands the result may well be seen as a setback for Barack Obama's ambitions for new peace initiatives as the shift to a right wing leaning will undoubtedly give Binyamin Netanyahu, the Likud leader,a role in future negotiations
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