NETANYAHU announces approval of $35bn gas deal with Egypt

Thursday, December 18, 2025 -Israeli Prime Minister Benjamin Netanyahu has announced the approval of a $35 billion natural gas deal with Egypt, marking a major development in regional energy cooperation. 

The agreement is set to boost gas exports from Israel to Egypt, strengthening economic ties while positioning both countries as key players in the Eastern Mediterranean energy market. Officials say the deal is expected to enhance energy security and generate significant long-term revenue.

Under the agreement, Israeli gas will be supplied to Egypt for domestic use and potential re-export, including liquefied natural gas shipments to international markets. 

Energy analysts note that the deal reinforces Israel’s role as a major gas supplier while supporting Egypt’s ambitions to become a regional energy hub. The scale of the agreement signals strong confidence in long-term demand despite global market volatility.

The announcement has drawn swift regional and international attention, with supporters highlighting economic growth and strategic cooperation, while critics raise concerns over transparency and geopolitical implications. 

For both governments, the deal represents a high-stakes economic and diplomatic move with far-reaching consequences. As energy demand and regional competition intensify, the agreement could reshape power dynamics across the Middle East.