Both talks and the issue of Iran were not as prominent among factors as expected by many observers. Domestic issues, in contrast, played a large role in the campaign.

Israel has no partner among Palestinians, Danon said, and noted that peace initiatives have been tried but haven't borne fruit. He cited the situation in Gaza, where militants fire missiles into Israel despite the country's departure from that Palestinian territory. Israel launched an offensive against Palestinian militants in Gaza last year after enduring missile fire on its territory.

The next government, he said, will reach out to Palestinians "but will also continue to make sure Israelis are strong and safe."

Israel doesn't "want to see an al Qaeda state in our backyard," Danon said.

Makovsky said the election is good news for the Obama administration, which has had prickly relations with the right-wing Netanyahu government. It comes after a high turnout -- the percentage of eligible voters who cast a vote was 66.6%, just 1% more than the 2009 election.

"It's unclear if Netanyahu wanted a pure right-wing option in the first place," he said.

"But Washington can breathe a sigh of relief that Netanyahu will need to reach accommodation with some parties at the center of the map who essentially would like to see progress on the Palestinian issue as well as on economic issues."