Netanyahu Halts $35b Egypt Gas Deal Over Sinai Troops

By Staff, Agencies

"Israel" Hayom daily reported that Prime Minister Benjamin Netanyahu has halted the advancement of the massive Leviathan gas export agreement with Egypt, insisting it will not proceed without his personal approval. 

The move comes amid claims that Cairo has breached security provisions of the 1979 normalization agreement.

Netanyahu is expected to consult with Energy Minister Eli Cohen, a member of the Security Cabinet and the official empowered to ratify such contracts. Without Cohen's signature, the agreement cannot come into effect.

Three weeks ago, Leviathan partners signed a $35B deal with Egypt’s BOE to export 130 bcm of gas through 2040—the largest energy agreement in “Israel’s” history.

“Israel Hayom” claimed US-led monitors reduced oversight of Egypt’s Sinai deployments, accusing Cairo of violating treaty limits with tunnels, runways, and troop buildup; “Israel’s” envoy lobbied Washington for tighter scrutiny.

Yet critics note that these "violations" are cited just as Egypt has been among the most outspoken Arab states demanding an end to "Israel's" war on Gaza and supporting South Africa's genocide case at the International Court of Justice.

For the first time, “Israel” is using gas exports as political leverage, with Netanyahu and Cohen seeking guarantees from Egypt before resuming vital supplies amid Cairo’s energy crisis.

In 2022, under EU pressure, Egypt signed a trilateral deal with “Tel Aviv” and Brussels to reroute East Med gas to Europe, deepening reliance on “Israeli” energy and undermining its own autonomy.

By freezing the deal, Netanyahu is pressuring Egypt to comply with “Israeli” demands on Sinai and the Philadelphi Corridor, linking Cairo’s energy needs to political concessions Egypt warns could violate the peace treaty.

Observers say Netanyahu is exploiting Egypt’s energy crisis to mute its opposition to the Gaza genocide, using gas as a tool of regional coercion.