Israel (Washington Insider) – Egypt and Israel signed the
largest $34.7 billion gas deal. PM Netanyahu confirmed 112 billion shekels, Dia
Rashwan called it commercial, and Yair Lapid highlighted the regional strategic
impact.
As TOBIAS
HOLCMAN on Jerusalem Post News reported, Egypt has said its new gas deal
with Israel is a purely commercial agreement between private companies. Dia
Rashwan, head of the State Information Service, told Saudi channel Asharq News
on Thursday, Dec 18, 2025, that the deal should be seen as economic, not
political.
Officials highlighted that the agreement aims to bring
financial benefits and trade growth while avoiding domestic controversy. Energy
deals with Israel can be sensitive in Egypt, and authorities are stressing that
this is a business arrangement.
“The deal serves a strategic interest to enhance
Egypt’s position as the only regional centre for gas trading in the Eastern
Mediterranean,”
the Saudi outlet reported, with officials stressing
that
“Egypt’s position on the Palestinian issue is firm and will not
change.”
Rashwan said that
“the agreement in question is a
purely commercial deal concluded according to purely economic and investment
considerations, and does not involve any_political dimensions or understandings
of any kind.”
“What happened was a commercial contract subject to
market rules and international investment mechanisms, far removed from any
political exploitation or interpretation,”
he added.
What impact will the Israel-Egypt $34.7B gas deal have on
the region?
The deal is the largest in Israel’s history. Prime Minister
Benjamin Netanyahu said it is worth 112 billion shekels, or about 34.7 billion
dollars. Of this, 58 billion shekels, roughly 18 billion dollars, will go
directly to state coffers.
The agreement strengthens Israel’s role as a key energy
exporter in the Eastern Mediterranean. Experts say it will bring significant
revenue to the government and private companies and boost regional energy
trade.
“We are working to extract gas from our territorial
waters, and our economy is among the best in the world,”
he said.
“This deal greatly strengthens Israel’s position as a regional energy
powerhouse, and it contributes to stability in our region.”
Former Israeli Prime Minister and opposition leader Yair
Lapid said on Thursday, Dec 18, 2025, that the recent gas agreement could be a
major milestone for energy cooperation in the region.
“turning Egypt
into the one leading the reconstruction and demilitarisation of Gaza,”
adding that he already warned that
“Egypt is preferable to Turkey and
Qatar.”
“In February 2025, almost a year ago, I presented
the ‘Egypt Plan’ to the government in Washington – strengthening economic ties
with Cairo, and a combined effort to get Egypt to take on the management of the
Gaza Strip,”
he posted on X.
https://x.com/yairlapid/status/2001680875172286496?s=20
He said the plan behind the deal had been presented
to many international and regional leaders. This included the United States
government, the European Union, Gulf country leaders, and Egyptian officials.
Lapid added that sharing the plan with these international
partners highlights its strategic importance. Involving the U.S., the EU, and
Gulf nations could help create coordinated energy cooperation and stronger
partnerships across the Eastern Mediterranean and Middle East.
“Only one party refused outright to discuss it – the
Netanyahu government,”
Lapid assured.
“We must not miss another historic opportunity here,
and we must not waste any more time. The government needs to act with the
Americans to expand the agreement and ensure that Egypt is the leading party in
managing Gaza and disarming Hamas of its weapons,”
Lapid concluded.
In January 2020, Israel began producing natural gas from the
offshore Leviathan gas field; exports to Egypt began shortly thereafter under
previously signed agreements. In August 2025, partners in the Leviathan Project
entered into Israel’s largest-ever export agreement with Egypt, which includes
approximately 130 billion cubic meters of gas under a 20 year contract valued
at approximately $35 billion. This new agreement is in addition to an earlier
agreement from 2019.
