Netanyahu approves $35 billion natural gas export deal to Egypt, largest in Israeli history

The Hindu
The Hindu
53m ago
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Israel's $35 billion gas deal with Egypt bolsters its regional energy status and may improve strained ties post-conflict.
Netanyahu approves $35 billion natural gas export deal to Egypt, largest in Israeli history
A What happened
Israeli Prime Minister Benjamin Netanyahu has signed off on a $35 billion natural gas export deal to Egypt, set to last 15 years and delivered by Chevron from Mediterranean fields off Israel's coast. This deal is Israel's largest and is expected to allocate half of proceeds to state funds. It marks an effort to restore ties with Egypt, which has mediated in the Israel-Hamas Gaza conflict and criticized Israel’s military actions. The agreement follows political delays and U.S. diplomatic involvement. Simultaneously, Germany approved a $6.5 billion expansion for Israel's Arrow 3 missile defense system, its biggest defense export deal, emphasizing regional security developments.
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Key insights

  • 1

    Energy exports as regional leverage: Israel is using its sizeable natural gas reserves to assert influence and improve Israel-Egypt relations after conflict-related strain, highlighting energy diplomacy's strategic role in the Middle East.

  • 2

    Link between energy and defense cooperation: Simultaneous large-scale energy and defense agreements with Egypt and Germany indicate Israel’s integrated approach to advancing economic and security partnerships.

Takeaways

The approval of this large-scale gas export deal represents a strategic pivot toward leveraging natural resources for regional influence and cooperation, potentially easing recent tensions and aligning with broader security partnerships.

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