Why Israel’s Failure to Approve USD 35 Billion Gas Deal with Egypt Could Impact the Middle East

United States Energy Secretary Chris Wright cancelled his planned six-day visit to Israel on Friday after Energy Minister Eli Cohen declined to approve a major gas export agreement with Egypt. The deal, first signed in August, involves exports from Israel’s Leviathan gas field valued at USD 35 billion and represents the largest energy export agreement in Israel’s history. Cohen’s refusal to sign the agreement has already caused diplomatic ripples. According to his office, American officials had been applying considerable pressure on Israel to finalise the transaction. The United States has a direct interest in the deal, as it is lobbying on behalf of Chevron, one of the co-owners of Leviathan, Israel’s primary offshore gas source.