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The War in Gaza and the Implications for Energy in the Eastern Mediterranean
Israeli Prime Minister Naftali Bennett with Cypriot President Nicos Anastasiades and Greek Prime Minister Kyriakos Mitsotakis in Jerusalem on Dec. 7, 2021. Photo: Amos Ben-Gershom / Government Press Office
The war with Hamas in Gaza, and the clashes in the north against Hezbollah, are inevitably affecting both the regional and global energy markets. Uncertainty is not good for economic markets, especially the energy sector. There have not yet been significant increases in oil prices, and natural gas prices have risen only marginally — but no major new deals are being made because the global energy market is waiting and watching, or showing “cautious nervousness.” This is mainly because there are still high quantities of gas available in the market. Europe has managed to overcome the lack of gas from Russia with supply from other sources (mainly liquified gas from the US and elsewhere), and European emergency stores are almost completely full.
Few have yet compared the current energy situation in the Middle East to the oil embargo surrounding the Yom Kippur War in 1973. A couple of weeks ago, the Iranian Minister of Energy called for a similar boycott at the gathering of the Islamic Conference in Saudi Arabia, but as expected, his call went unanswered.
With that said, the situation in the Eastern Mediterranean is complex. The Israeli Ministry of Energy’s October 9 instruction to Chevron to temporarily halt gas production in the Tamar field did not materially affect the local energy market. Chevron announced that it was able to compensate for the lack of gas from Tamar with other fields, both for the Israeli market and for the export markets in Egypt and Jordan. However, the situation could become more difficult as the fighting continues, especially if it escalates to include additional arenas.
It is important to keep an eye on this, especially with regard to the possible consequences for Egypt. Egypt is facing a shortage of natural gas for the local market that has led to power outages from time to time. Moreover, its dire economic situation necessitates the flow of gas from Israel — both for the domestic market and no less importantly for export in order to bring foreign currency into the depleted Egyptian treasury. Present estimations indicate a sharp decrease of gas export to Egypt of around 70%(!). This could have serious internal and regional political consequences. The angry reaction of President Sisi to what was interpreted as an Israeli attempt to evacuate Palestinians from the Gaza Strip into Sinai reflected his concern about both Egypt’s poor economic position and the strategic implications of the Gaza problem being pushed into Egypt’s front yard. A few days ago, fuel prices in Egypt increased by about 15%, but the government said it will not raise the price of basic products. Egypt’s worsening economic situation should be of considerable concern to the region and beyond.
An equally interesting arena is Lebanon. The drilling by the Total company in Block 9 did not yield positive results. Although no official announcement was made by the Lebanese Ministry of Energy, reports indicate that no gas was found. This is a fairly common result in the energy sector, as gas often fails to be found with the first drilling. But in view of Lebanon’s current economic and political circumstances, this is not good news. Reports indicate that the Lebanese government is trying to convince the relevant companies to drill in Block 8 to preserve “energy momentum”. In the present circumstances, with clashes between Hezbollah and Israel taking place, the energy angle is naturally being sidelined, but it will be very important later.
In the Cypriot arena, Chevron submitted an up-to-date action plan to the government regarding the Aphrodite gas field, including its intention to export the gas to Egypt. The government responded with reservations. The dispute has not yet been settled, though it probably will be in the next couple of months. The Israeli angle concerning this field is not clear (there is a dispute regarding the Israeli portion of this field), but when Chevron decides to proceed with Aphrodite, a means will likely be found to settle this angle as well.
In addition, the Italian company ENI is expected to drill in another field with positive potential in Cypriot waters at the beginning of next year.
There is uncertainty regarding the Turkish position on Cypriot energy potential. It should be expected that if Chevron takes practical steps in the Aphrodite field, Ankara will respond. Although the atmosphere between Turkey and Greece is improving, this is mainly on the bilateral level between those two countries. Cyprus is another matter. Intriguingly, however, the Turkish Foreign Minister made a statement in which he suggested finding a way to share the gas between Greek-Cypriots and Turkish-Cypriots even in the absence of a comprehensive solution to the Cyprus problem. Is this a serious idea? Will it be possible to motivate all the parties to take such a creative and pragmatic step? Time will tell, but clearly the Israeli-Lebanese maritime agreement has spurred some creativity about other conflicts in the region.
For the time being, the war in Gaza has not created too many waves in either the regional energy sector or the global one. However, the uncertainty will increase as the crisis continues, especially against the background of the ground operation in the Gaza Strip. Escalation in the Lebanese arena would further exacerbate the situation. It is important to stress that although there is no apparent shortage of natural gas in the world market, and although it is to be expected that Saudi Arabia and its Gulf partners will adopt a responsible policy in this regard concerning oil, ongoing instability could have a negative effect on the energy sector. Obviously, Washington is aware of this and is paying close attention. Israel needs to do the same because of the strategic implications for the region.
Interestingly enough, the Cypriot Energy Minister stated on November 8 that the war might provide an impetus to plans for a pipeline conveying offshore natural gas to Cyprus for processing and shipping to foreign markets. He added that energy cooperation between Israel and Turkey might have fallen by the wayside given Turkey’s increasingly harsh criticism of Israeli actions in Gaza. While it is too early to assess the implications of the war for Israel’s plans for another export option for its natural gas, lessons should be taken the day after.
Ambassador (ret.) Michael Harari joined the Israeli Foreign Ministry and served more than 30 years in a range of diplomatic roles in Israel and abroad, including (among others) in Cairo, London and Nicosia. His final position abroad was as Israeli Ambassador to Cyprus (2010-2015). Today he serves as a consultant in the fields of strategy, policy and energy and lectures in the Political Science Department at the Jezreel Valley College. A version of this article was originally published by The BESA Center.
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Hamas Warns Against Cooperation with US Relief Efforts In Bid to Restore Grip on Gaza
Hamas terrorists carry grenade launchers at the funeral of Marwan Issa, a senior Hamas deputy military commander who was killed in an Israeli airstrike during the conflict between Israel and Hamas, in the central Gaza Strip, Feb. 7, 2025. Photo: REUTERS/Ramadan Abed
The Hamas-run Interior Ministry in Gaza has warned residents not to cooperate with the US- and Israeli-backed Gaza Humanitarian Foundation, as the terror group seeks to reassert its grip on the enclave amid mounting international pressure to accept a US-brokered ceasefire.
“It is strictly forbidden to deal with, work for, or provide any form of assistance or cover to the American organization (GHF) or its local or foreign agents,” the Interior Ministry said in a statement Thursday.
“Legal action will be taken against anyone proven to be involved in cooperation with this organization, including the imposition of the maximum penalties stipulated in the applicable national laws,” the statement warns.
The GHF released a statement in response to Hamas’ warnings, saying the organization has delivered millions of meals “safely and without interference.”
“This statement from the Hamas-controlled Interior Ministry confirms what we’ve known all along: Hamas is losing control,” the GHF said.
The GHF began distributing food packages in Gaza in late May, implementing a new aid delivery model aimed at preventing the diversion of supplies by Hamas, as Israel continues its defensive military campaign against the Palestinian terrorist group.
The initiative has drawn criticism from the UN and international organizations, some of which have claimed that Jerusalem is causing starvation in the war-torn enclave.
Israel has vehemently denied such accusations, noting that, until its recently imposed blockade, it had provided significant humanitarian aid in the enclave throughout the war.
Israeli officials have also said much of the aid that flows into Gaza is stolen by Hamas, which uses it for terrorist operations and sells the rest at high prices to Gazan civilians.
According to their reports, the organization has delivered over 56 million meals to Palestinians in just one month.
Hamas’s latest threat comes amid growing international pressure to accept a US-backed ceasefire plan proposed by President Donald Trump, which sets a 60-day timeline to finalize the details leading to a full resolution of the conflict.
In a post on Truth Social, Trump announced that Israel has agreed to the “necessary conditions” to finalize a 60-day ceasefire in Gaza, though Israel has not confirmed this claim.
Israeli Prime Minister Benjamin Netanyahu is expected to meet with Trump next week in Washington, DC — his third visit in less than six months — as they work to finalize the terms of the ceasefire agreement.
Even though Trump hasn’t provided details on the proposed truce, he said Washington would “work with all parties to end the war” during the 60-day period.
“I hope, for the good of the Middle East, that Hamas takes this Deal, because it will not get better — IT WILL ONLY GET WORSE,” he wrote in a social media post.
Since the start of the war, ceasefire talks between Jerusalem and Hamas have repeatedly failed to yield enduring results.
Israeli officials have previously said they will only agree to end the war if Hamas surrenders, disarms, and goes into exile — a demand the terror group has firmly rejected.
“I am telling you — there will be no Hamas,” Netanyahu said during a speech Wednesday.
For its part, Hamas has said it is willing to release the remaining 50 hostages — fewer than half of whom are believed to be alive — in exchange for a full Israeli withdrawal from Gaza and an end to the war.
While the terrorist group said it is “ready and serious” to reach a deal that would end the war, it has yet to accept this latest proposal.
In a statement, the group said it aims to reach an agreement that “guarantees an end to the aggression, the withdrawal [of Israeli forces], and urgent relief for our people in the Gaza Strip.”
According to media reports, the proposed 60-day ceasefire would include a partial Israeli withdrawal from Gaza, a surge in humanitarian aid, and the release of the remaining hostages held by Hamas, with US and mediator assurances on advancing talks to end the war — though it remains unclear how many hostages would be freed.
For Israel, the key to any deal is the release of most, if not all, hostages still held in Gaza, as well as the disarmament of Hamas, while the terror group is seeking assurances to end the war as it tries to reassert control over the war-torn enclave.
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UK Lawmakers Move to Designate Palestine Action as Terrorist Group Following RAF Vandalism Protest
Police block a street as pro-Palestinian demonstrators gather to protest British Home Secretary Yvette Cooper’s plans to proscribe the “Palestine Action” group in the coming weeks, in London, Britain, June 23, 2025. Photo: REUTERS/Jaimi Joy
British lawmakers voted Wednesday to designate Palestine Action as a terrorist organization, following the group’s recent vandalizing of two military aircraft at a Royal Air Force base in protest of the government’s support for Israel.
Last month, members of the UK-based anti-Israel group Palestine Action broke into RAF Brize Norton in Oxfordshire, a county west of London, and vandalized two Voyager aircraft used for military transport and refueling — the latest in a series of destructive acts carried out by the organization.
Palestine Action has regularly targeted British sites connected to Israeli defense firm Elbit Systems as well as other companies in Britain linked to Israel since the start of the conflict in Gaza in 2023.
Under British law, Home Secretary Yvette Cooper has the authority to ban an organization if it is believed to commit, promote, or otherwise be involved in acts of terrorism.
Passed overwhelmingly by a vote of 385 to 26 in the lower chamber — the House of Commons — the measure is now set to be reviewed by the upper chamber, the House of Lords, on Thursday.
If approved, the ban would take effect within days, making it a crime to belong to or support Palestine Action and placing the group on the same legal footing as Al Qaeda, Hamas, and the Islamic State under UK law.
Palestine Action, which claims that Britain is an “active participant” in the Gaza conflict due to its military support for Israel, condemned the ban as “an unhinged reaction” and announced plans to challenge it in court — similar to the legal challenges currently being mounted by Hamas.
Under the Terrorism Act 2000, belonging to a proscribed group is a criminal offense punishable by up to 14 years in prison or a fine, while wearing clothing or displaying items supporting such a group can lead to up to six months in prison and/or a fine of up to £5,000.
Palestine Action claimed responsibility for the recent attack, in which two of its activists sprayed red paint into the turbine engines of two Airbus Voyager aircraft and used crowbars to inflict additional damage.
According to the group, the red paint — also sprayed across the runway — was meant to symbolize “Palestinian bloodshed.” A Palestine Liberation Organization flag was also left at the scene.
On Thursday, local authorities arrested four members of the group, aged between 22 and 35, who were charged with conspiracy to enter a prohibited place knowingly for a purpose prejudicial to the safety or interests of the UK, as well as conspiracy to commit criminal damage.
Palestine Action said this latest attack was carried out as a protest against the planes’ role in supporting what the group called Israel’s “genocide” in Gaza.
At the time of the attack, Cooper condemned the group’s actions, stating that their behavior had grown increasingly aggressive and resulted in millions of pounds in damages.
“The disgraceful attack on Brize Norton … is the latest in a long history of unacceptable criminal damage committed by Palestine Action,” Cooper said in a written statement.
“The UK’s defense enterprise is vital to the nation’s national security and this government will not tolerate those that put that security at risk,” she continued.
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US-backed Gaza Relief NGO Vows ‘Legal Action’ Against AP Claim Group Fired on Palestinian Civilians
Palestinians collect aid supplies from the US-backed Gaza Humanitarian Foundation, in Rafah, in the southern Gaza Strip, June 9, 2025. Photo: REUTERS/Hatem Khaled
The Gaza Humanitarian Foundation (GHF), a US-backed nonprofit operating aid distribution centers in the Gaza Strip, is pushing back forcefully against an Associated Press report alleging that its contractors opened fire on Palestinian civilians.
The GHF is accusing the AP of withholding key evidence and relying on a “disgruntled former contractor” as a central source.
“In response, we are pursuing legal action,” the organization said in a statement released Wednesday.
GHF said it conducted an “immediate investigation” after being contacted by the AP, reviewing time-stamped video footage and sworn witness testimony. The group concluded that the allegations were “categorically false,” stating that no civilians were fired upon at any of their distribution sites and that the gunfire heard in the AP’s video came from Israeli forces operating outside the vicinity.
“What is most troubling is that the AP refused to share the full video with us prior to publication, despite the seriousness of the allegations,” the statement read. “If they believed their own reporting, they should have provided us with the footage so we could take immediate and appropriate action.”
The nonprofit’s public rebuttal raises sharp questions about the AP’s reporting process, suggesting the outlet declined to engage with the organization in good faith and instead leaned on a source GHF describes as having been terminated “for misconduct” weeks prior. The group also claimed the AP’s recent coverage of its activities had begun to “echo narratives advanced by the Hamas-controlled Gaza Ministry of Health.”
The AP has not yet responded publicly to the GHF’s accusations or provided clarification about its decision not to share the video footage before publication. The original report alleged that American contractors employed by GHF had fired weapons near or toward civilians.
The GHF statement confirmed that a contractor seen shouting in the AP’s video had been removed from operations, though the group insisted this was unrelated to any violence and did not constitute evidence of wrongdoing.
GHF, which describes its mission as delivering food to Gaza “safely, directly, and without interference,” said it remains committed to transparency but would not allow its operations to be “derailed by misinformation.”
The dispute highlights the fraught information environment in Gaza, where limited access and competing narratives frequently complicate the verification of on-the-ground events.
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