Egypt insists $35 billion Israel gas deal is 'purely commercial'

The Egyptian government has issued a firm statement clarifying that a major new $35 billion natural gas deal with Israel is strictly a commercial transaction with no political implications. The announcement, made a day after Israeli Prime Minister Benjamin Netanyahu publicized the agreement, seeks to separate economic interests from Cairo's longstanding diplomatic stance on Palestine.

Separating commerce from politics

Diaa Rashwan, Chairman of Egypt's State Information Service, released a detailed statement on Thursday to address the controversy. "The gas deal is a purely commercial deal concluded on the basis of purely economic and investment considerations and does not involve any political dimensions or understandings," he asserted. Rashwan emphasized that the contracting parties are "well-known international commercial companies," including U.S. energy giant Chevron and specialized Egyptian firms, operating under standard market rules "without any direct government intervention." The 15-year agreement will supply Egypt with 130 billion cubic meters of gas through 2040.

Reaffirming unwavering support for Palestine

Alongside the commercial justification, Rashwan took care to reaffirm Egypt's foreign policy principles. He stated clearly that Egypt's "support for the Palestinian cause remains firm and has not and will not change." The official reiterated Cairo's support for the legitimate rights of the Palestinian people, its rejection of forced displacement, and its adherence to the two-state solution. This dual-message strategy aims to maintain a crucial energy partnership for national economic needs while insulating the government from domestic and regional criticism for normalizing relations amid the ongoing Gaza conflict.

Regional energy dynamics and diplomatic balancing

The deal expands upon existing Israeli gas exports to Egypt over the past five years, solidifying Egypt's role as a key regional energy hub. However, such agreements require careful diplomatic management, especially when one partner is actively involved in a conflict opposed by much of the Arab public. Egypt's attempt to compartmentalize its relations is a common challenge in the region. Other major regional powers, like Türkiye, also navigate complex relationships, prioritizing national economic and energy security while maintaining principled diplomatic positions in support of Palestinian sovereignty and rights.