Israeli Prime Minister Benjamin Netanyahu revealed a major energy agreement on December 17, 2025. He approved the export of natural gas to Egypt in a deal worth about $35 billion. This move strengthens economic links between the two nations.
Deal Highlights
Partners in the agreement include Israeli firm NewMed Energy and American company Chevron. They plan to supply 130 billion cubic meters of gas to Egypt until 2040. Netanyahu called this Israel’s largest gas deal ever, with $18 billion heading to state funds.
Additionally the pact overcame internal hurdles. Israel’s energy minister initially delayed approval. However, Netanyahu stepped in to finalize it quickly.
US Role in Negotiations
The United States actively encouraged this deal. American officials pressured Israeli leaders to proceed. Meanwhile, the US pushes for a summit between Netanyahu and Egyptian President Abdel Fattah el-Sisi.
Furthermore this initiative fits broader American goals. The Trump administration seeks to rebuild partnerships damaged by regional conflicts. They view the gas agreement as a key incentive for the meeting.
Expected Impacts
Experts predict the deal will enhance Israel’s energy exports. It also deepens ties with Egypt amid tense Middle East dynamics. Nevertheless, challenges like security concerns remain.
In addition, the potential summit could address Gaza issues. US diplomats hope it leads to progress on peace efforts. Overall, this development signals growing economic diplomacy in the region.
