Israelis are voting in early parliament elections following a campaign focused on economic issues such as the high cost of living, rather than fears of a nuclear Iran or the Israeli-Arab conflict.

Prime Minister Benjamin Netanyahu appealed to his hard-line base at the last minute, saying a Palestinian state would not be established if he is elected to a fourth term. His remarks could further sour ties with the United States.

Netanyahu's main challenger is Isaac Herzog of the center-left Zionist Union.

Voters are electing on Tuesday a 120-member parliament, casting ballots for a party list. It typically takes weeks of negotiations for a governing coalition to be formed.

Isaac Herzog's party has been polling slightly ahead of Netanyahu's Likud, but neither political camp has a clear majority.