CAIRO, Sept. 1, 2026—In the turbulent political climate of the Middle East, peace is being talked about in conference rooms but is now being put to the test through pipelines. A historic gas deal between Egypt and Israel raises a question: can economic ties prevent the two highly suspicious neighbors from becoming even more hostile? According to a report by the Carnegie Endowment for International Peace, the answer is both hopeful and very tentative.
The agreement could raise the price of fighting and maintain the necessary communications, though it cannot be a substitute for political agreements. This agreement is important. In December 2025, Egypt and Israel agreed to enhance their current gas relationship into a new phase lasting until 2040. Israel is expected to supply more gas to Egypt, where it will be liquefied and sold in Europe.
Egypt’s energy cooperation with Israel has become increasingly important, given that the production of natural gas in Egypt has become weaker and electricity consumption has risen. Essentially, Israel has accounted for around 15 to 20 percent of the daily Egyptian gas supply, currently making it harder and more expensive just in case a sudden disturbance occurs in supply.
Israel, on the other hand, is enjoying great profit from the Egyptian market and its liquefaction capabilities.
Europe also has an interest since it is aiming for greater plurality of suppliers and stability in the southern part of the Mediterranean Sea.
For instance, companies like Chevron operating the Leviathan gas field have put millions of dollars into supporting energy infrastructures in the region.
However, history provides us a warning.
Germany had a strong energy relationship with Russia for decades under the slogan “Change through Trade.” However, the Russian invasion of Ukraine showed that energy dependence could not prevent war, and it resulted in consequences from a strategic and economic point of view, with Germany experiencing its outcomes from failed relations with Russia.
This means that the Egypt-Israel gas agreement offers an interesting contradiction; while an increase in the price of gas can make conflict more expensive, it is only peace that has the ability to sustain cooperation. What we need to do is utilize economic cooperation not as a substitute for diplomacy, but as a means of achieving it. Maintaining energy supplies can prevent crisis situations, while long-term stability requires finding solutions for the political problems, border conflicts, and humanitarian suffering that exist.
So we conclude that pipelines can connect economies, while diplomacy, justice, and real interest in peace can unite peoples.
