A central issue was whether to review accords with Israel, yet no country went as far as severing ties. Egypt especially remains heavily dependent on Israeli gas. Around half of Israel’s production flows to Egypt and Jordan. When one Israeli field was shut down after October 7, Egypt’s electricity sector immediately suffered. Today, with rising demand, Cairo is under greater pressure to secure gas and LNG imports, making any rupture with Israel unrealistic. This highlights the deep co-dependence between Israel and its neighbors. In terms of any impact on other East Mediterranean gas players, Cyprus projects are tied to Egyptian infrastructure, while Lebanon could benefit if companies show interest later this year, particularly if Israel, facing isolation, loses investor appeal.
Europe’s Energy Challenge
Washington is pressing Europe to phase out Russian oil and gas well before the 2027 target, pointing to long-term LNG contracts with U.S. suppliers. Trump, however, is also avoiding actions that could lift prices and undermine Fed rate cuts, leaving Europe to absorb the pressure. This risks further division on the continent, particularly with Europe’s new defense burdens, an outcome that rivals like Russia and China may welcome.