Fresh Israeli poll deals blow to White House\'s peace plan

U.S. President Donald Trump has billed it as the "deal of the century" but it's now being called "the deal of the next century." Those words from the Palestinian chief negotiator on any hopes of a peace plan after Israeli politics were thrown in to stalemate.

Lawmakers voted to dissolve parliament in the early hours of Thursday (May 30) after Prime Minister Benjamin Netanyahu failed to form a coalition government before a midnight deadline.

With a new ballot now set for September and coalition-building likely to stretch into November it could further delay U.S. efforts to press ahead with its forthcoming plan to resolve the Israeli-Palestinian conflict.

The White House team behind the peace proposal, including Trump's son-in-law Jared Kushner, are in Jerusalem for talks Thursday.

Reuters Maayan Lubell is covering the story.

(SOUNDBITE) (ENGLISH) REUTERS CORRESPONDENT, MAAYAN LUBELL, SAYING: "The Palestinians are already boycotting the Trump administration over what they see as its heavy pro-Israel bias.

Israel can't move forward on any peace plan unless it has a fixed government in place that's not likely to happen before November, by then President Trump will likely be deep in his own election campaign." Officially, we're told the stalemate came down to a feud over mandatory military conscription between Netanyahu's presumed allies.

Some parties want young religious scholars exempted.

While others and many Israelis say they should share the burden.

Faced with the prospect of having to step aside and allow someone else to try and form a coalition, Netanyahu instead drummed up votes to dissolve parliament.

(SOUNDBITE) (ENGLISH) REUTERS CORRESPONDENT, MAAYAN LUBELL, SAYING: "Israeli election law says that once a candidate has failed to form a government, the president has discretion to let another lawmaker try before another election is called.

However, Netanyahu's push towards an early election now prevents that completely.

Why?

Why did Netanyahu want an early election?

Well he says he wanted to stop a left-wing government taking power.

Netanyahu's critics however say that he may be driven by his own personal, political survival." So, whether Israelis like it or not, they'll be heading back to the polls for the second time this year at great cost to the state.