According to Israeli law, the Prime Minister must be a member of the Knesset. There can be new elections now (my preference) in which a new set of personalities could be elected, but the Knesset must decide on new elections and is usually reluctant to disband itself, especially with a number of parties expected to lose many seats. Many Knesset members have a personal reason to oppose new elections now. Assuming no new elections now, the Kadima party will determine the new PM. There are a few people in Kadimah interested in the job: Livni, Shetreet, Mofaz, Peres. Mofaz has just been found to had been negligible over 6 years in preparing the IDF. Peres too old and tired. While Leivni shares responsibility for the war, she actually gave sound advice to Olmert to conclude the war within days, but he rejected her. She is popular and I will give her a chance. Shetreet is much more experience and probably tougher. But the problems now are not that tough. They are relatively simple, moving towards peace. P.S. Never mind what I think of Feiglin; he is not in the Knesset and cannot serve as PM.
Pakistan: Suicide bomber attacks tribal police, killing 4 (Reuters)