The Trump administration marked a new diplomatic win by helping bring Egypt and Israel closer through a landmark deal that stands to bolster both countries’ energy ambitions and regional influence. The move could also be aimed at paving the way for a potential joint summit, according to media reports.
The $35 gas deal with Chevron and Israeli partners will supply gas to Egypt, Israel’s Prime Minister Benjamin Netanyahu announced. “This deal greatly strengthens Israel’s status as a regional energy power and contributes to stability in our region,” he stated on Wednesday.
Why It Matters
Washington seeks to revive and expand normalization efforts with Israel across the region and is engaged in negotiations over the Abraham Accords with countries like Saudi Arabia, Syria and Lebanon, a strategy that has faced major setbacks since the outbreak of the Gaza war more than two years ago. Egypt remains a key regional partner needed as President Donald Trump seeks to advance his Gaza peace plan and Middle East agenda reshaping a power balance aimed at curbing Iranian influence.
What To Know
Netanyahu reportedly agreed to the gas export deal with Egypt after significant pressure from the United States. According to The Times of Israel, U.S. Energy Secretary Chris Wright canceled a planned six‑day visit to Israel in late October after Israeli Energy Minister Eli Cohen refused to sign citing pricing concerns.
Under the agreement, Israel’s Leviathan field will supply Egypt with 130 billion cubic meters of gas through 2040, with partners Chevron, NewMed Energy, and Ratio Petroleum Energy, according to Oilprice. Egypt imports about 20 % of its gas from Israel as it aims to become an LNG export hub.
“It encourages other companies to invest in gas exploration in Israel’s economic waters, Netanyahu said in a video statement on Wednesday promising fair prices for Israeli consumers.
Relations between Cairo and Tel Aviv have been strained by the Gaza conflict, particularly over security issues along Egypt’s Sinai border, though the two countries remain bound by their U.S.-brokered 1979 peace treaty.
According to Axios, the White House wants to push for a summit between Netanyahu and Sisi, and views selling gas to Egypt as a step beyond security cooperation that will improve Israel’s ties with the Arab world.
Tensions with Egypt increased due to Trump’s initial Gaza plan earlier this year that aimed at displacing the Palestinian population into Egypt and other countries. Egyptian President Abdel Fattah el‑Sisi rejected the idea and has not visited the U.S. since, skipping the 2025 United Nations General Assembly.
Trump signed the Gaza ceasefire deal in an October ceremony in Sharm el-Sheikh which Netanyahu did not attend. The U.S. is planning a deployment of international forces to monitor Gaza, with possible participation from Arab and Muslim countries, while Egypt has not confirmed whether it will participate.
Israel signed the Abraham Accords in 2020 under the Biden administration with the UAE, Bahrain, Morocco, and Sudan. Saudi Arabia is the next major potential candidate, conditioned by the kingdom’s desire to see more guarantees toward a two-state solution. In Syria, despite tentative security talks, Israel maintains heavy military pressure in the south. In Lebanon, Israel has continued to strike despite a 2024 ceasefire agreement with Hezbollah.
What People Are Saying
Israel’s Energy Minister Eli Cohen: “The approval of this gas agreement is a historic moment for the State of Israel, both in the security-diplomatic sphere and the economic sphere. This is the largest export deal in the history of the country.”
A U.S. official told Axios earlier in December: “What we told Bibi is that he needs to turn it into a warm peace and then work together to de-escalate things in the region. If it works with Egypt we can then do the same thing with Syria, Lebanon and Saudi Arabia.”
What Happens Next
Netanyahu is scheduled to meet Trump at his Mar-a-Lago resort later this month.
