There is another option, not yet pursued.

By Ted Belman

Rumors abound that Likud is in talks with both Yash Atid and National Union to form a national government. Both sides denied such talks are taking place.

Netanyahu said to tell Smotrich he won’t get defense job, because of US objections

Likud party cancels all planned meetings with Religious Zionism; Smotrich said ‘furious’ with prime-minister-designate and vowing not to relent on his demand for the position

I am furious myself that Bibi is of a mindset that we must yield to US pressure.  He must categorically reject such pressure and make clear that we are masters in our own house.

There is another option which no one has suggested.

We know that Ben Gvir and Smotrich have agreed that either they are both in or they’re both out. That means its either Gantz or them… Now if Ben Gvir and Smotrich convince either Shas or UTJ to join them in a common front, ball game over.  Bibi will be forced to go with them. I doubt he will  abandon the three parties and go with Lapid.

The above linked article:

Netanyahu reportedly told Smotrich that Israel needs to act moderately in terms of security and diplomacy for the rest of Biden’s term, especially in regard to the West Bank. According to the reports, he is concerned about giving Smotrich authority over issues related to the particularly sensitive issue of West Bank settlements. A Walla news report said Smotrich told Netanyahu he would want authority related to settlements and to the IDF’s Civil Administration even if he takes the Treasury post.

The Likud party said the meeting with Smotrich, which was initiated by Netanyahu, was held “in good spirits.” However, the reports said Smotrich was “furious” with Netanyahu’s stance and said he would “go all the way” with his demand for the defense portfolio. He also said his party would not join the coalition if it did not commit to advancing the agenda for which it was elected, Walla reported.

In an INN article:

The talks are centered around the possibility of forming a new government without the rightist Religious Zionist Party, Otzma Yehudit, and Noam factions, with Yesh Atid and at least part of the National Unity party joining in their place. It appears that the New Hope faction within National Unity is not inclined to join a government with Netanyahu, even if the Blue and White faction of Benny Gantz would.

The talks began as a result of pressure by the Biden administration on Netanyahu, Lapid, Gantz, and President Isaac Herzog to form a unity government and prevent the inclusion of rightist elements.

The report claimed that the Biden administration told Netanyahu and leaders on the center-left that Israel will pay a price in the international community if a narrow right-wing government is formed.

We are already paying a price to the US, EU and the UN. This must end.