Israeli energy minister halts $35bn natural gas deal with Egypt

Israel’s energy minister Eli Cohen has stalled approval of a $35 billion natural gas deal with Egypt, saying Israel must first secure better commercial terms for its domestic market. The move angered U.S. officials, who view the agreement as key to regional energy cooperation.

Source Financial Times

Cohen insisted he would not approve the deal until Israeli interests are safeguarded and a fair domestic price is established. Industry sources say the dispute centers on gas pricing in NewMed Energy’s ongoing negotiations with Israeli buyers.

The proposed agreement would nearly triple gas exports from the Leviathan field to Egypt by 2029. But amid the Gaza conflict and rising diplomatic tension between Israel and Cairo, the energy standoff has become another flashpoint in Middle Eastern geopolitics.