The White House is actively working to arrange a meeting between Israeli Prime Minister Benjamin Netanyahu and Egyptian President Abdel Fattah el Sissi. This push comes amid efforts to revive a stalled major gas deal between Israel and Egypt, aiming to strengthen ties and foster a warmer peace in the region as of December 2025.
Recent reports indicate that the Trump administration sees this summit as a key step to boost economic cooperation. Officials believe approving the gas agreement could create mutual benefits and reduce tensions after years of frosty relations between the two leaders.
Background on Israel Egypt Relations
Israel and Egypt have maintained diplomatic ties since the 1979 peace treaty, but personal relations between Netanyahu and Sissi remain strained. The two leaders last met publicly in 2017, and Sissi avoided direct talks with Netanyahu during the Gaza conflict that ended in a ceasefire in October 2025.
This chill stems from disagreements over military activities in Sinai and Gaza mediation efforts. Egypt played a vital role in brokering the ceasefire, yet underlying distrust persists. For instance, Netanyahu turned down a last minute invitation to a Sharm el Sheikh summit in October 2025, citing a religious holiday, which reportedly upset Sissi.
Economic incentives now appear central to warming these ties. The White House encourages Israel to focus on business deals rather than just security concerns like Iran.
The push aligns with broader regional diplomacy trends in 2025, where economic pacts have helped stabilize relations in the Middle East.
Details of the Stalled Gas Deal
The proposed gas deal involves Israel supplying natural gas to Egypt, potentially worth up to 35 billion dollars over several years. This agreement stalled earlier in 2025 due to Netanyahu’s concerns over Egyptian military buildup in Sinai, which he viewed as a violation of the peace treaty.
Sources indicate that Israel froze the deal in September 2025, demanding assurances from Cairo. The deal would leverage Israel’s offshore gas fields, like Leviathan and Tamar, to meet Egypt’s energy needs and boost exports to Europe.
Key aspects of the deal include:
- Long term supply contracts for liquefied natural gas.
- Infrastructure investments to connect pipelines across borders.
- Economic interdependence to prevent future conflicts.
If approved, this could generate thousands of jobs and billions in revenue for both nations. Analysts predict it might lower energy costs in Egypt by 15 percent within two years, based on similar regional pacts.
Negotiations resumed in late November 2025, with US mediators urging progress before year end.
Recent data from energy reports shows Israel’s gas exports reached record highs in 2025, making this deal a logical next step.
US Role in Brokering the Summit
The Trump administration, through advisers like Jared Kushner, is driving this initiative. Kushner has advised Netanyahu to build economic diplomacy, drawing parallels to how Gulf states bring business delegations to Washington for deals.
A US official noted that focusing on trade could shift the narrative from conflict to cooperation. The White House conditions the summit on Israel approving the gas deal and offering other incentives, such as joint infrastructure projects.
This fits into Trump’s broader Middle East strategy in 2025, which includes pushing for deals with Syria, Lebanon, and Saudi Arabia. For example, similar economic talks with Saudi Arabia advanced in November 2025, leading to normalized relations.
US involvement aims to create a network of interdependent economies, reducing the risk of war.
Potential Benefits and Regional Impact
Approving the gas deal could lead to a warmer peace, as described by officials. It would enhance energy security for Egypt, which faces growing domestic demand, and provide Israel with a stable market amid global fluctuations.
Broader impacts include:
- Strengthened alliances against common threats.
- Increased private sector involvement in peace processes.
- Potential for similar deals with other neighbors.
A table outlining projected economic outcomes:
| Aspect | Israel Benefit | Egypt Benefit |
|---|---|---|
| Revenue | Up to 20 billion dollars in exports | Reduced import costs by 10 billion dollars |
| Jobs | 5,000 new positions in energy sector | 8,000 jobs in infrastructure |
| Energy Security | Diversified markets | Stable supply amid shortages |
These figures come from 2025 energy forecasts, highlighting mutual gains.
Experts suggest this could inspire a ripple effect, encouraging pacts in transportation and tech.
Challenges Ahead
Despite optimism, hurdles remain. Netanyahu’s domestic politics, including coalition pressures, have delayed decisions. Some Israeli officials worry about Egypt’s Sinai activities, leading to reconnaissance missions in 2025.
Sissi remains cautious, seeking clear concessions before agreeing to meet. Public sentiment in Egypt, critical of closer ties with Israel amid the Gaza aftermath, adds complexity.
Tensions flared in September 2025 when Netanyahu linked the deal to military reviews. Overcoming these requires trust building measures.
Analysts note that without US pressure, progress might stall into 2026.
Looking Forward
This summit could mark a turning point in Middle East diplomacy, blending economics with peace efforts. As 2025 ends, watchers anticipate updates soon.
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