The cancellation of a high-profile visit by U.S. Energy Secretary Chris Wright to Israel has thrown a spotlight on intensifying tensions surrounding a record-breaking $35 billion natural gas export deal between Israel and Egypt. The deal, which would see massive volumes of natural gas exported from Israel’s Leviathan offshore field to Egypt, is now on ice after Israeli Energy Minister Eli Cohen refused to sign off, citing concerns over both domestic economic fairness and diplomatic disputes with Cairo.
According to The Media Line, the visit was called off on October 30, 2025, after Cohen withheld his signature on the agreement. The Leviathan consortium, led by the American energy giant Chevron, had inked the deal in August with the goal of dramatically increasing gas exports to Egypt. If finalized, it would become the largest such agreement in Israel’s history, channeling hundreds of millions of shekels into state coffers through royalties and tax revenues.
But for Cohen, the numbers on paper weren’t enough. His office made it clear that approval would be delayed “until the agreement guarantees fair prices for the Israeli market.” Cohen’s aides emphasized that the minister is prioritizing economic fairness for Israeli consumers above all else. As quoted by Israel Hayom, “The minister demanded that domestic energy prices remain attractive. Since negotiations have not concluded, he declined to authorize exports until the matter is resolved.”
The U.S. administration, for its part, has been anything but passive. Both Cohen and Prime Minister Benjamin Netanyahu have faced mounting pressure from Washington to finalize the deal. The Trump administration, which has been working closely with Israel on regional energy cooperation and peace efforts in Gaza, reportedly sees the agreement as a linchpin for broader diplomatic and economic strategies in the region.
Chevron, which operates the Leviathan field located roughly 130 kilometers off Israel’s northern coast in the Mediterranean Sea, has also lobbied Israeli authorities to move forward. The company warned that further delays could jeopardize badly needed infrastructure investments and undermine confidence in Israel as a stable energy exporter. Since 2019, Leviathan has been a key supplier of gas to the Israeli market, and since 2020, it has exported to Egypt under a separate deal covering 60 billion cubic meters through the early 2030s. So far, 23.5 billion cubic meters have been delivered, according to The Media Line.
Yet, the current impasse is about more than just economics. As reported by Israel Hayom, Cohen’s hesitation is also rooted in concerns over Egypt’s alleged violations of its peace treaty with Israel. This adds a diplomatic wrinkle to an already complex negotiation, with both sides wary of moving forward without assurances that their broader interests will be protected. Cohen’s office stated that “efforts have been made to settle the political issues between Israel and Egypt,” though specifics remain unclear.
According to the Associated Press, Cohen’s refusal to sign the deal has effectively frozen progress on what would be a historic export agreement. The move is seen as risky, with the potential to inflame relations not only with Egypt but also with the United States—both of whom have served as critical brokers in the recent Israel-Hamas ceasefire that paused more than two years of conflict. U.S. officials in Israel declined to comment, and Egypt’s Foreign Ministry did not immediately respond to requests for clarification.
The pressure from Washington has not gone unnoticed. Cohen’s office described “a great deal of pressure on Israeli officials” to approve the deal, a rare public acknowledgment of friction between the U.S. and its close Middle Eastern ally. For Secretary Wright, the lack of progress was enough to call off his six-day visit, a decision that underscores the seriousness of the dispute. As The Media Line notes, it is an unusual instance of a U.S. government official openly acknowledging conflict with an Israeli counterpart.
Behind the scenes, Chevron’s lobbying efforts have been intense. The company has reportedly pressed both Netanyahu and Cohen to finalize the ratification, warning that continued delays could have long-term consequences for Israel’s energy sector. The Finance Ministry has also weighed in, cautioning that domestic gas supplies could fall short within 25 years if consumption continues to rise at current rates. Some officials worry that excessive exports could eventually drive up electricity costs for Israeli consumers, a scenario Cohen appears determined to avoid.
Diplomatic talks with Cairo are ongoing, with both sides seeking to align their energy and economic interests before any new export approvals are granted. According to Israel Hayom, several unresolved issues require further clarification between Jerusalem and Cairo, and efforts are underway to resolve these disputes. The stakes are high: not only does the agreement promise significant financial returns for Israel, but it also has the potential to reshape regional energy dynamics and strengthen ties between two historic rivals.
The Leviathan field itself is a symbol of Israel’s growing influence in the global energy market. Discovered in 2010, it is one of the largest offshore gas finds in the past decade and has transformed Israel from a net importer to a budding energy exporter. The field’s strategic location and substantial reserves have made it a cornerstone of Israel’s energy policy, and the government has been keen to leverage its potential for both economic and diplomatic gain.
Still, the debate over how much gas to export—and at what price—remains contentious. The Finance Ministry’s warning about future domestic shortages has resonated with many Israelis, who fear that prioritizing exports could lead to higher costs at home. Cohen’s insistence on competitive prices for the Israeli market reflects these concerns and highlights the delicate balance policymakers must strike between short-term gains and long-term security.
For now, the $35 billion deal is in limbo. Cohen’s firm stance, coupled with ongoing diplomatic efforts, suggests that a resolution may not be imminent. The episode has exposed the complex interplay of economics, diplomacy, and domestic politics that underpins major energy agreements in the region. As negotiations continue, all eyes will be on Jerusalem, Cairo, and Washington to see whether compromise can be reached—or whether the rift will deepen, with far-reaching consequences for the region’s energy future.
The drama surrounding the Leviathan gas deal is a vivid reminder that, in the world of international energy, nothing is ever truly settled until all sides are satisfied. With so much at stake, the coming weeks—and perhaps months—promise to be anything but dull.
