Israeli Government Crisis Raises Fresh Doubts for U.S. Peace Plan

The government crisis, while resolved for the moment, injected fresh uncertainty into U.S. hopes to unveil a peace plan in coming months

Felicia Schwartz and

Dov Lieber

Updated Nov. 19, 2018 10:38 a.m. ET

TEL AVIV—Israeli Prime Minister Benjamin Netanyahu fended off a challenge to his fragile coalition Monday as a key partner backed away from a threat to quit the government, staving off snap elections but leaving the embattled leader’s position so precarious that U.S. hopes to begin a peace process in the coming months could be thrown off course.

Naftali Bennett’s decision to stay on as education minister and keep his Jewish Home party in the ruling coalition lessens the possibility of early elections, at least for now, though...