The race for Israel’s next prime minister isn’t over.  Israel — and the world — remain in suspense as officials tally the votes for the nation’s next prime minister.

Foreign Minister Tzipi Livni and right-wing leader Benjamin Netanyahu both claimed victory Tuesday, but the race is still too close to call. The latest exit polls showed Livni’s party having won about 30 seats in Israel’s 120-seat parliament compared to some 28 seats for Likud. But other reports said right-wing parties — including Likud — appear to have won a clear majority of 65 seats in the 120-seat parliament. It all could be decided by a third candidate, ultranationalist Avigdor Lieberman, who based his campaign on denying citizenship to Israeli Arabs he considers disloyal. Regardless of uncertainty, Livni and her centrist Kadima party were certainly acting as if she were the victor, and the lawmaker appealed to Netanyahu, to join a national unity government that she would lead.

As the politicians duke it out over who should lead, the political turmoil could complicate life in Israel and also jeopardize peace talks there. Livni supports a peace accord with the Palestinians, while Netanyahu is more hawkish. "You are going to have a very wobbly, dysfunctional, survival-minded coalition in Israel," Daniel Levy, a former Israeli peace negotiator, told The Washington Post.

Even though Livni — if she wins — would be more apt to open talks with the Palestinians, Palestinian officials said no matter who leads Israel’s new government, the Israelis will have to halt Jewish settlement of the West Bank before they can move forward.

"Kadima winning doesn’t mean it will be able to form a government," said Rafiq Husseini, a senior aide to Palestinian President Mahmoud Abbas.