Traders are pricing in dramatically higher odds of Yoav Gallant becoming Israel's next Prime Minister, with his market surging from 2¢ to 77¢. The former Defense Minister emerged as a potential Netanyahu challenger after being fired in November 2024 following deep disagreements over military strategy and judicial reforms.

The market movement suggests traders see Gallant as positioned to capitalize on Netanyahu's shattered "Mr. Security" reputation following the October 7th security failures. Political analysts suggest Gallant intends to face Netanyahu for Likud party leadership rather than leaving the party entirely. The massive odds swing indicates growing speculation about potential coalition instability or leadership challenges, with former officials suggesting Gallant's dismissal could be the "first step towards the dissolution of Netanyahu's government".