Massive Gas Deal: Israel and Egypt Forge Economic Ties Amid Conflict

Egypt insists its recent natural gas deal with Israel is purely commercial without political implications. Approved by Israel and involving Chevron, NewMed, and Ratio partners, the agreement aims to deliver significant gas quantities to Egypt, amid regional tensions caused by conflicts involving Hamas and Israel.

Egypt declared on Thursday that its natural gas agreement with Israel is purely commercial with no political ties. The contract was finalized by private energy firms under market rules, excluding direct government involvement.

Israel recently approved the export deal, signed last August with Chevron and partners NewMed and Ratio, to supply gas to Egypt. This development follows increased regional tensions after the deadly assault by Hamas on Israel and Israel's subsequent retaliation against Gaza, resulting in mass casualties.

Egypt stands firm on its position supporting Palestinian rights and rejects forced displacement, advocating for a two-state solution. Israeli Prime Minister Benjamin Netanyahu labeled the agreement as Israel's most significant gas deal, forecasting it will enhance regional stability. Egypt is compensating for its declining gas production since 2022 by increasing reliance on Israel's supply.

(With inputs from agencies.)