Both parties claim win in Israel elections

Foreign Minister Tzipi Livni and hard-line rival Benjamin Netanyahu both have claimed victory in Israel's parliamentary election, but official results showed a race so close it could be decided by a third candidate u2014 a rising power among the hawks.

Right-wing parties u2014 including Netanyahu's Likud Party u2014 appear to have won a clear majority of 65 seats in the 120-seat parliament, which would give Netanyahu the upper hand in forming the next government.

However, with 99 per cent of the votes counted in the Israel polls, Livni's centrist Kadima Party had 28 seats, while Likud had 27. Those results could change by a seat or two u2014 enough to alter the outcome u2014 when soldiers' votes are tallied tomorrow evening.

The winner of the election wasn't clear in part because Livni could try to form a coalition with hawkish parties. It appeared ultranationalist Avigdor Lieberman, who based his campaign on denying citizenship to Israeli Arabs he considers disloyal, could single-handedly determine the country's next leader with his decision of whom to join.

He declared after the vote that he had spoken to both Livni and Netanyahu and told them he could be persuaded to join either one, but he added that he wanted a "nationalist right-wing government".

Meanwhile, Netanyahu told a crowd of cheering supporters, "With God's help, I will lead the next government... The national camp, led by the Likud, has won a clear advantage."

Soon after, Livni took the stage before a crowd of flag-waving supporters and flashed a V for victory sign. "Today the people chose Kadima... We will form the next government led by Kadima."

Whoever comes out on top, the political wrangling is likely to drag on for weeks, and with it the fate of international Mideast peace efforts.

A win by Livni, who favors giving up land to make room for a Palestinian state, would boost President Barack Obama's goal of pursuing an Israeli-Palestinian peace deal.

A government led by Netanyahu, who opposes concessions to the Palestinians, could put Israel and the US on a collision course. Netanyahu says he would allow West Bank settlements to expand and is seen as likely to contemplate military action against Iran.

Israelis vote for parties, not individuals. Since no party won a parliamentary majority, the leader of one of the major parties must try to put together a coalition with other factions u2014 a process that can take up to six weeks.