Israel and Egypt have just inked what officials are calling the largest energy export agreement in the nation’s history. Valued at approximately $35 billion (112 billion NIS), the deal commits 130 billion cubic meters of natural gas from the Leviathan offshore field to Egypt through 2040. While the sheer scale of the pact is a milestone for East Mediterranean cooperation, it forces a critical question: In the volatile Middle East, does economic interdependence provide a security buffer or a strategic vulnerability?

The Economic Windfall

From a fiscal perspective, the deal is an undeniable win. At a time when Israel faces mounting budgetary pressures due to prolonged security expenditures, the projected 58 billion NIS in royalties and taxes offers a vital lifeline to the state treasury.

Beyond the immediate cash flow, the........

© The Times of Israel (Blogs)