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.