JERUSALEM (AP) — Prime Minister Benjamin Netanyahu and his hard-line allies fared far worse than expected in a parliamentary election Tuesday, preliminary results showed, likely forcing him to reach across the aisle to court a popular political newcomer to cobble together a new coalition.

While Netanyahu appeared positioned to serve a third term as prime minister, the results marked a major setback for his policies and could force him to make new concessions to restart long-stalled peace talks with the Palestinians.

His most likely partner was Yesh Atid, or There is a Future, a party headed by political newcomer Yair Lapid that showed surprising strength. Lapid has said he would only join a government committed to sweeping economic changes and a resumption of peace talks with the Palestinians.