WhatsappPrime Minister Benjamin Netanyahu’s approval of a roughly $35 billion natural gas export agreement with Egypt marks far more than a commercial milestone. It is a strategic turning point. With this deal, Israel moves decisively from being a regional actor fighting for legitimacy to a regional power exercising leverage. Energy, not diplomacy slogans, is now one of Jerusalem’s most effective tools.
Under the agreement, Israel will export an estimated 130 billion cubic meters of natural gas from the Leviathan field to Egypt through 2040. For Cairo, this gas is not optional. Egypt’s domestic production has declined sharply, its economy is under strain, and its ability to meet internal energy demand is increasingly dependent on external supply. Israel is no longer just a neighbor; it is a cornerstone of Egypt’s energy security.
This reality reshapes the regional balance of power. States that rely on Israeli gas do not posture casually against Israeli security interests. When Israel controls a critical economic artery, rhetoric gives way to pragmatism. Energy dependence breeds restraint, coordination, and quiet alignment, even when public messaging remains hostile.
The financial dimension matters just as much. Tens of billions of dollars flowing into Israel’s economy strengthen state revenues at a time when Israel faces sustained military pressure from Hamas in Gaza, Hezbollah in Lebanon, and Iran’s expanding proxy network. Economic resilience translates directly into strategic autonomy. A country that can fund its own defense, replenish its own stockpiles, and invest heavily in next-generation military capabilities does not need permission slips from foreign capitals to act.
This deal also dismantles a long-standing illusion promoted by Israel’s adversaries: that Israel is isolated, temporary, or strategically expendable. In reality, Israel has become indispensable. Egyptian liquefaction facilities, export ambitions, and domestic stability are now tied to Israeli offshore gas. That dependence creates leverage on everything from Sinai security coordination to broader regional diplomacy. Israel’s freedom of action increases not because it threatens its neighbors, but because they need it.
The implications extend beyond Egypt. The Eastern Mediterranean energy map increasingly runs through Israel. That sends a clear message to Europe, the Gulf, and global investors: Israel is not just a security consumer, but a security provider, an energy hub, and a long-term strategic anchor. Capital follows strength, and this agreement signals that Israel offers both stability and returns.
Critically, this is not a concession-based peace. Israel did not retreat, apologize, or weaken its military posture to achieve this outcome. It built, drilled, invested, and defended its assets. Power created opportunity, not the other way around. This is the model Israel’s leadership has argued for years: deterrence first, prosperity second, diplomacy last.
For Israel’s enemies, the message is blunt. A state that fuels regional economies is harder to isolate, harder to coerce, and far more dangerous to challenge. Terror groups thrive on instability and economic collapse; this deal moves the region in the opposite direction, under Israeli leadership.
Netanyahu called the agreement historic. He is right, but not for ceremonial reasons. History will record this moment as the point when Israel’s energy strength translated into strategic dominance. Gas pipelines may be buried underwater, but the power they generate is visible above the surface. Israel now operates with greater leverage, greater confidence, and a freer hand to confront its security threats on its own terms.
