The 15-year agreement, facilitated by U.S. energy giant Chevron, arrives at a critical diplomatic juncture. Relations between Cairo and Jerusalem have been severely tested during the two-year conflict in the Gaza Strip.
- Financial Impact: Half of the multi-billion dollar proceeds will go directly into Israel’s state coffers.
- Regional Strategy: Netanyahu stated the deal “greatly strengthens Israel’s position as a regional energy power” and serves as a cornerstone for regional stability.
- Key Mediator: Egypt has played a vital role in mediating between Israel and Hamas, including the U.S.-brokered ceasefire reached in October, despite being a vocal critic of Israel’s military offensive.
Internal Hurdles Cleared
The deal was previously stalled by Israeli Energy Minister Eli Cohen, who argued the initial terms were unfavorable to Israel. This delay was significant enough to cause U.S. Energy Secretary Chris Wright to cancel a high-profile trip to Israel in October. However, Cohen stood alongside Netanyahu during the announcement, confirming that the final terms now meet national interests.
Record-Breaking Defense Exports: The Arrow 3
In a parallel boost to Israel’s economy and global standing, the Defense Ministry confirmed an expansion of its agreement with Germany.
- Arrow 3 Missile System: German lawmakers approved increasing the defense deal’s value from $3.5 billion to $6.5 billion.
- Historic Scale: This officially becomes the largest Israeli defense export deal ever.
- European Security: Germany is fast-tracking the acquisition of the sophisticated missile defense system to bolster its air defenses in response to regional threats from Russia.