Netanyahu Announces Historic $35 Billion Gas Deal with Egypt

Israeli Prime Minister Benjamin Netanyahu announced on Wednesday the approval of a landmark natural gas export agreement with Egypt valued at approximately $35 billion (112 billion shekels). Speaking in a televised address alongside Energy Minister Eli Cohen, Netanyahu hailed the accord as the “largest energy deal in Israel’s history,” marking a significant expansion of economic and strategic ties between the two neighbors. 
The agreement authorizes the export of natural gas from the massive Leviathan field, located off Israel’s Mediterranean coast, to Egypt over the next 15 years. The deal involves U.S. energy giant Chevron, which operates the field, along with its Israeli partners, including NewMed Energy. According to the Prime Minister, the contract will generate an estimated 58 billion shekels ($18 billion) in direct revenue for the Israeli state treasury, funds he promised would be invested in “education, healthcare, infrastructure, and security”. 
The approval comes after months of regulatory delays. Energy Minister Eli Cohen had previously withheld his signature, demanding assurances that the export volume would not compromise Israel’s domestic energy security or inflate prices for local consumers. However, intense diplomatic pressure from the United States reportedly accelerated the finalization of the deal. The Trump administration has viewed the agreement as a critical lever to stabilize the Egyptian economy, which has been grappling with severe power blackouts and declining domestic gas production since 2022. 
“This deal greatly strengthens Israel’s status as a regional energy power and contributes to stability in our region,” Netanyahu stated. For Cairo, the influx of Israeli gas is a lifeline. Once a net exporter, Egypt has been forced to spend billions on liquefied natural gas (LNG) imports to meet soaring demand. The reliable flow of piped gas from Leviathan is expected to alleviate these shortages and potentially allow Egypt to resume its ambition of becoming a regional energy hub by re-exporting surplus gas to Europe. 
The agreement also carries significant geopolitical weight. Analysts suggest that the economic interdependence created by the deal could pave the way for a high-level summit between Netanyahu and Egyptian President Abdel Fattah el-Sisi, an event Washington is keen to broker. By cementing Israel’s role as a critical energy supplier to the Arab world’s most populous nation, the deal underscores the shifting dynamics of the Middle East, where economic pragmatism increasingly drives security cooperation.