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Will the Energy Sector Help Prevent a War Between Israel and Hezbollah?
Lebanon’s Hezbollah leader Sayyed Hassan Nasrallah addresses his supporters through a screen during a rally commemorating the annual Hezbollah Martyrs’ Day, in Beirut’s southern suburbs. Photo: Reuters/Aziz Taher
The maritime border agreement signed by Israel and Lebanon in October 2022 constituted a significant development in the relationship between the two countries. The potential for natural gas exploration in Lebanon’s waters, against the background of the economic and political crisis in that country, was seen at the time as a tempting incentive to persuade Hezbollah to agree to the pact. The underlying assumption of the agreement was that it represented a meaningful step that could help ease the strained relations between Israel and Hezbollah, and possibly serve as a basis for future agreements on energy and economic collaboration.
That assumption is now facing a significant test following the events of October 7. While it appears that Hamas’ attack caught Hezbollah by surprise, the organization rallied to assist “its Palestinian brothers” out of a commitment to “the unity of the arenas.” With that said, Hezbollah is conducting itself in the conflict quite deliberately, maintaining a set of “rules of the game” that are accepted by both itself and Israel. In the background, the United States is making clear that it opposes widespread escalation.
As part of Washington’s efforts to prevent escalation on the northern front, intensive clandestine contacts have taken place in recent weeks between Israel and Lebanon/ Hezbollah regarding points of contention related to the land border between the two countries, as well as energy issues. For the purpose of these negotiations, the Americans have deployed Special Envoy for Energy Affairs Amos Hochstein, who helped mediate the original border deal signed in October 2022.
A January 6 article by Ibrahim al-Amin, editor of Hezbollah-affiliated newspaper Al-Akhbar, noted that Hochstein is implicitly connected to the residents of Beirut in Lebanon regarding the renewal of drilling by the French company Total in Lebanese economic waters and the current negotiations with Israel. According to the report, Hochstein acknowledged that “the suspension of energy activities stems from political motives” and indicated that Total plans to carry out additional drilling in Block 9 (following earlier drilling that was unsuccessful), as well as in Blocks 8 and 10, hinting that drilling will not proceed as long as the conflict continues. Other reports suggest that American assistance for the recovery of the Lebanese energy sector is being presented as a condition for calming the winds of war against Israel.
The American assumption that the Lebanese energy sector can be leveraged to moderate Hezbollah is based on the fact that Lebanon’s energy crisis, which served as the backdrop for the signing of the agreement in 2022, has only worsened since then. Lebanon’s Electricité du Liban (EDL) is now only able to provide an average of about four hours of electricity per day to the residents of Beirut, and there is no capability to improve this any time soon.
General demand for electricity in Lebanon stands at about 3,500 megawatts, but its power plants, which rely entirely on oil, can only reach approximately 1,800 megawatts. In recent years, Lebanon tried to purchase electricity from Turkey using special ships equipped with generators anchored in the port of Beirut. But those efforts were abandoned due to accumulating debts and security issues. Last year, an attempt was made to purchase electricity from Jordan that would use natural gas from Israel, but the agreement faced difficulties due to American sanctions on Syria (through which the electricity grid passes from Jordan to Lebanon). Even if this deal were to materialize, the grid connections would only serve about 10% of Lebanon’s electricity demand. As a result of this state of affairs, most Lebanese residents who can afford it rely on private generators powered by solar energy in their yards and basements. Around 50,000 households have solar panels on their roofs (approximately 4% of the 1.3 million households in Lebanon).
Despite the high hopes the Lebanese government is pinning on gas exploration in its waters, the security of Lebanon’s energy supply is not expected to improve over the next few years. That is because Lebanon’s energy sector relies entirely on oil imports, including for electricity generation, transportation, heating, and industry. Even if Lebanon were to discover gas in its waters this year, the country has neither gas infrastructure nor power stations capable of using gas.
Furthermore, while the first drilling by Total in October 2023 did not yield positive results, a gas find on the next drilling would not help Lebanon’s energy crisis in the short term. It would take five to seven years from a gas discovery for Lebanon to begin to benefit from export revenues or the local use of the gas, because infrastructure would have to be built from scratch.
Until that time, Lebanon will remain dependent on the importation of crude oil from Syria and Iraq. Due to its massive debts, Lebanon is almost incapable of paying for the oil. Instead, it provides various services to Iraqi citizens, such as medical services. The crude oil Lebanon receives is sent to refineries in Greece, Turkey, and Russia, and in return, Lebanon receives solar and gasoline for the operation of power stations and transportation at reduced costs and fees. Attempts to obtain cheaper fuel from Iran through the sea have been blocked by the United States.
The serious state of Lebanon’s energy sector requires the country to pursue dramatic initiatives in terms of infrastructure and connectivity. However, such initiatives cannot be advanced without major external assistance, and the United States plays a pivotal role in this regard. For example, the time it will take to establish an export infrastructure for gas from Lebanon could be significantly shortened if Lebanon were to collaborate with Israel and transfer the gas through shared export facilities, possibly to be established by the American company Chevron. Simultaneously, Lebanon could try to make additional electricity connections to Syria and Jordan, but this would only be possible with the consent of the United States (due to sanctions on Syria) and Israel’s agreement to supply additional gas to power stations in Jordan for electricity production.
Last year, the Lebanese Ministry of Energy and Water published a plan to install significant renewable energy capacity in the next five years, including 680 megawatts of solar energy, 742 megawatts of wind energy, and 394 megawatts of hydroelectric energy. However, these ambitious plans cannot be implemented without direct assistance from countries like the United States and France, because Lebanese companies lack the expertise to undertake projects of such magnitude.
An interesting perspective was provided last month in Doha at a quadrilateral meeting of energy ministers from Egypt, Jordan, Lebanon, and Syria. The meeting focused on the possibility of activating the Arab Gas Pipeline to supply gas from Egypt to Lebanon. Since Israel also passes gas through this pipeline to Jordan and Egypt, the implication is that Israeli gas could reach Lebanon. As mentioned, this idea was raised about a year ago to assist Lebanon in coping with the severe crisis in its electricity market and to prevent Iranian involvement.
While the move garnered support from the most relevant players, including Egypt and Israel, it ultimately did not materialize due to American sanctions on the Assad regime. The gas pipeline passes through Syria on its way to Lebanon, as do the power lines from Jordan, and the United States was not willing to be flexible in its policy towards the Syrian regime despite having offered assistance to the Lebanese. During the meeting, the Syrians claimed to have fixed pipeline issues to enable the transportation of gas, though it was clear that Damascus was seeking to convey a political message rather than express a genuine commitment to implement this solution. Regardless, this development highlights the severity of the crisis in Lebanon’s energy sector, which is manifested in prolonged and consistent power outages severe enough to promote a willingness by the country to explore unconventional solutions.
Despite the importance of energy potential for Lebanon, it is not considered a game-changer for Hezbollah in the current negotiation process. However, it provides a framework for negotiations as they are currently unfolding, with successful American mediation that has gained the trust of all parties, including Hezbollah. The latter seeks, within its overall considerations, and with due deference to its patron Tehran’s considerations regarding the Gaza conflict, to clarify to the Lebanese public that it is adopting a responsible position. It is, in fact, the player most capable of improving the economic situation in Lebanon.
In this regard, the maritime agreement, which allows exploration in the field of energy for Lebanon, is perceived (though it has not yet had any tangible success) as a positive step in the overall attempt to salvage the Lebanese economy. One should not overlook the regional context of gas discoveries in the Eastern Mediterranean over the past decade. Lebanon might eventually integrate into this regional framework for the export of gas to Turkey and Europe.
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.
Dr. Elai Rettig is an assistant professor in the Department of Political Studies and a senior research fellow at the Begin-Sadat Center for Strategic Studies at Bar-Ilan University. He specializes in energy geopolitics and national security. A version of this article was originally published by The BESA Center.
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In Reversal, Trump Says Russia Attacked Ukraine
US President Donald Trump and Russia’s President Vladimir Putin shake hands as they meet in Helsinki, Finland, July 16, 2018. Photo: REUTERS/Kevin Lamarque
President Donald Trump reversed course on Friday and said Russia did in fact invade Ukraine, and that Kyiv would soon sign a minerals agreement with the United States as part of efforts to end the Ukraine war.
Trump had said on Tuesday that Ukraine “should have never started” the war three years ago, prompting a wave of criticism both domestically and internationally. Pressed on the subject in an interview with Fox News Radio on Friday, he acknowledged Russia had invaded Ukraine on the order of Russian President Vladimir Putin.
“Russia attacked, but they shouldn’t have let him attack,” Trump said, adding that Ukraine President Volodymyr Zelensky and then-US President Joe Biden should have taken steps to avert the invasion.
Later, Trump predicted a minerals agreement would be reached soon.
“We’re signing an agreement, hopefully in the next fairly short period of time,” Trump told reporters in the Oval Office when asked about a possible deal for Ukraine’s minerals.
Zelensky said separately on Friday that Ukrainian and US teams were working on a draft agreement. “I am hoping for … a fair result,” he said in a video address after sharp exchanges this week between the two leaders.
Trump denounced Zelensky as a “dictator” on Wednesday and warned he had to move quickly to secure peace with Russia, which invaded Ukraine nearly three years ago, or risk losing his country.
The change in tone from the United States, Ukraine’s most important backer, has alarmed European officials and stoked fears that Kyiv could be forced into a peace deal that favors Putin.
Zelensky had said Trump was trapped in a “disinformation bubble,” but later toned down his statements and said he was hoping for American pragmatism.
Zelensky on Wednesday rejected US demands for $500 billion in mineral wealth from Ukraine to repay Washington for wartime aid, saying the United States had supplied nowhere near that sum so far and offered no specific security guarantees in the agreement.
Ukraine has valuable deposits of strategic minerals that the US wants. These include uranium, lithium, cobalt, rare earths and more and are used in applications such as batteries, technology and aerospace.
‘THEY DON’T HAVE ANY CARDS’
Speaking at a White House event earlier on Friday, Trump was critical of Zelensky while refraining from negative comments about Putin.
“I’ve had very good talks with Putin, and I’ve had not such good talks with Ukraine,” Trump said. “They don’t have any cards, but they’re playing tough.”
Separately, the United States on Friday proposed a United Nations resolution to mark the third anniversary of Russia’s invasion of Ukraine. The three-paragraph US draft, seen by Reuters, mourns loss of life during the “Russia-Ukraine conflict” and “implores a swift end to the conflict.”
Kyiv and its European allies want their own text to be adopted by the UN General Assembly on Monday calling for de-escalation, an early cessation of hostilities and peaceful resolution to the conflict.
The German government said on Friday that Chancellor Olaf Scholz and Zelensky agreed in a phone call that Ukraine must have a seat at the table in peace talks.
Polish President Andrzej Duda, meanwhile, urged Zelensky to keep up calm and constructive cooperation with Trump.
Duda, whose term in office expires this year, was one of Trump’s preferred international partners during his 2017-2021 presidency and they have described themselves as friends.
Poland’s president is due to meet Trump in Washington on Saturday, Poland’s state news agency PAP reported.
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Syrian Refugee Arrested After Berlin Stabbing as Germany Prepares to Vote
Police officers work at the Berlin Holocaust memorial after a suspected knife attack, February 21, 2025. Photo: REUTERS/Fabrizio Bensch
A Syrian refugee arrested over the stabbing of a tourist at Berlin’s Holocaust memorial had been planning “to kill Jews,” prosecutors said on Saturday, the day before an election which is expected to see a surge in support for the anti-migrant AfD.
The 19-year-old suspect appears to have been planning to kill Jews for several weeks – apparently motivated by the Middle Eastern conflict – which is why he chose this location, the prosecutors said in a statement.
Police arrested the suspect, whose hands and trousers were smeared with blood, shortly after the stabbing on Friday evening.
He was found to be carrying a prayer rug, a Quran, a note with verses from the Quran dated the previous day, and the suspected weapon in his backpack, which suggests a religious motivation, the prosecutors’ statement said.
The 30-year-old Spanish tourist underwent emergency surgery after sustaining injuries to his neck and was placed in an induced coma, the statement added, although he was no longer in a life-threatening condition.
Campaigning for Sunday’s election has been marred by a series of high-profile attacks in which the suspects are from migrant backgrounds, shifting the focus away from Germany’s ailing economy and boosting support for the far-right Alternative for Germany. Opinion polls show the AfD is on track to secure second place behind the conservative CDU/CSU bloc.
A January stabbing in which two people were killed, including a toddler, was blamed on an Afghan immigrant, prompting the CDU/CSU bloc to break a taboo on cooperating with the far right to push a motion cracking down on migration through parliament with the AfD’s support.
In December, a Saudi man who had lived in Germany for years, and whose social media posts indicated he sympathized with the AfD, rammed a car into a Christmas market, killing six and injuring hundreds.
The Holocaust memorial, one of the German capital’s most sacred sites, commemorates the six million Jews murdered by Adolf Hitler’s Nazis during World War Two, one of the darkest episodes in human history and a continuing focus of German historical atonement.
Interior Minister Nancy Faeser of the center-left Social Democrats, who have been accused of not doing enough for German security, said the perpetrator must be punished with the full severity of the law and immediately deported from prison.
“We will use all available means to deport violent offenders back to Syria,” she said. “Anyone who commits such acts and so disgustingly abuses the protection offered in Germany has forfeited any right to remain in our country.”
There is, so far, no evidence linking the suspect in Friday’s stabbing to any other persons or organizations, prosecutors said.
The suspect, who arrived in Germany as an unaccompanied minor, had no prior criminal record in Berlin and was previously unknown to both the police and the judicial authorities.
He was, however, known to police in the eastern state of Saxony, where he lived, for minor offenses related to general criminal activity, Bild newspaper cited the Saxon interior ministry as saying. The ministry did not reply to a request for comment.
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US Piles Pressure on Iraq to Resume Kurdish Oil Exports
FILE PHOTO: An oil field is seen in Kirkuk, Iraq October 18, 2017. Photo: REUTERS/Alaa Al-Marjani/File Photo
US President Donald Trump’s administration is piling pressure on Iraq to allow Kurdish oil exports to restart or face sanctions alongside Iran, eight sources with direct knowledge of the matter told Reuters.
An advisor to the Iraqi prime minister denied in a statement there had been a threat of sanctions or pressure on the government during its communications with the US administration.
A speedy resumption of exports from Iraq’s semi-autonomous Kurdistan region would help to offset a potential fall in Iranian oil exports, which Washington has pledged to cut to zero as part of Trump’s “maximum pressure” campaign against Tehran.
The US government has said it wants to isolate Iran from the global economy and eliminate its oil export revenues in order to slow Iran’s development of a nuclear weapon.
Iraq’s oil minister made a surprise announcement on Monday that exports from Kurdistan would resume next week. That would mark the end of a near two-year dispute that has cut flows of more than 300,000 barrels per day (bpd) of Kurdish oil via Turkey to global markets.
Reuters spoke to eight sources in Baghdad, Washington and Erbil, the capital of Iraqi Kurdistan, who said that mounting pressure from the new US administration was a key driver behind Monday’s announcement.
All of the sources declined to be named due to the sensitivity of the issue.
Iran views its neighbor and ally Iraq as vital for keeping its economy afloat amidst sanctions. But Baghdad, a partner to both the United States and Iran, is wary of being caught in the crosshairs of Trump’s policy to squeeze Tehran, the sources said.
Trump wants Iraqi Prime Minister Mohammed Shia al-Sudani to sever economic and military ties with Iran. Last week, Reuters reported that Iraq’s central bank blocked five more private banks from dollar access at the request of the U.S. Treasury.
Iraq’s announcement on export resumption was hurried and lacked detail on how it would address technical issues that need to be resolved before flows can restart, four of the eight sources also.
Iran wields considerable military, political and economic influence in Iraq through its powerful Shi’ite militias and the political parties it backs in Baghdad. But the increased US pressure comes at a time when Iran has been weakened by Israel’s attacks on its regional proxies.
Farhad Alaaldin, a foreign affairs adviser to the Iraqi prime minister, said in a statement there was no U.S. threat to impose sanctions if oil exports were not resumed. He noted Iraq’s parliament had already passed a law establishing a price for the oil and it was down to the companies involved to start pumping it to the pipeline.
“Decisions related to the management of national resources are taken in accordance with Iraqi sovereignty and in a way that serves the country’s economic interests,” he said.
CURB SMUGGLING
With the pipeline taking Kurdish crude to the Turkish port of Ceyhan closed since 2023, the smuggling of Kurdish oil to Iran by truck has flourished. The US is urging Baghdad to curb this flow, six of the eight sources said.
Reuters reported in July that an estimated 200,000 barrels per day of cut-price crude was being smuggled from Kurdistan to Iran and, to a lesser extent, Turkey by truck. The sources said the exports remained at around that level.
“Washington is pressuring Baghdad to ensure Kurdish crude is exported to global markets through Turkey rather than being sold cheaply to Iran,” said an Iraqi oil official with knowledge of the crude trucking shipments crossing to Iran.
While the closure of the Turkish pipeline has prompted an uptick in Kurdish oil smuggling via Iran, a larger network that some experts believe generates at least $1 billion a year for Iran and its proxies has flourished in Iraq since al-Sudani took office in 2022, Reuters reported last year.
Two US administration officials confirmed the US had asked the Iraqi government to resume Kurdish exports. One of them said the move would help to dampen upward pressure on oil prices.
Asked about the administration’s pressuring of Iraq to open up Kurdish oil exports, a White House official said: “It’s not only important for regional security that our Kurdish partners be allowed to export their own oil but also help keep the price of gas low.”
There has been close military cooperation between authorities in Kurdistan and the United States in the fight against Islamic State.
Trump’s restoration of the “maximum pressure” campaign on Iran was one of his first acts after returning to office in late January. In addition to efforts to drive Iran’s oil exports to zero, Trump ordered the US treasury secretary to ensure that Iran can’t use Iraq’s financial system.
Trump also came into office promising to lower energy costs for Americans. A sharp drop in oil exports from Iran could drive up oil prices, and with it the gasoline price worldwide.
The resumption of Kurdish exports would help offset some of the loss to global supply of lower Iranian exports, but would cover only a fraction of the more than 2 million bpd of crude and fuel that Iran ships. However, Iran has proven adept in the past at finding means to circumvent US sanctions on its oil sales.
Ole Hansen, head of commodity strategy at Saxo Bank, said the restart of exports from Kurdistan could help increase global oil supplies at a time when output was disrupted from other regions, such as Kazakhstan, where exports have dropped this week following a Ukrainian drone attack on a major pipeline pumping station in southern Russia.
“At this point in time, I believe the market has adopted a relatively neutral but nervous stance on crude oil prices,” he said.
HURDLES TO RESTART
The pipeline was halted by Turkey in March 2023 after the International Chamber of Commerce (ICC) ordered Ankara to pay Baghdad $1.5 billion in damages for unauthorized exports between 2014 and 2018.
There are still unresolved issues around payment, pricing and maintenance, the sources told Reuters. Two days of talks in the Kurdish city of Erbil this week failed to reach agreement, sources said.
The federal government wanted exports to restart without making commitments to the KRG on payments and without clarity on the payment mechanism, a source familiar with the matter said.
“We can’t do that. We need clear visibility on guarantees,” the source said.
Oil companies working in Kurdistan also have questions over payments.
Executives from Norwegian firm DNO told analysts on Feb. 6 that before agreeing to ship oil through the pipeline to Ceyhan they wanted to understand how the company would be paid for future deliveries and how it would recoup $300 million for the oil it had delivered before the pipeline was shut.
Turkey has yet to receive any information from Iraq on the resumption of flows, Turkish Energy Minister Alparslan Bayraktar told Reuters on Wednesday.
A restart could also cause issues in OPEC+, or the Organization of the Petroleum Exporting Countries plus Russia and other allies, where Iraq has been under pressure to comply with its pledge to reduce its output. Additional supply from the Kurdish region could put Iraq over its OPEC+ supply target.
An Iraqi official said it was possible for Iraq to restart the pipeline and remain compliant with OPEC+ supply policy.
Giovanni Staunovo, a commodity analyst at investment bank UBS, said the overall impact of the resumption could be muted.
“From an oil market perspective, Iraq is bound to the OPEC+ production deal, so I wouldn’t expect additional production from Iraq in case of a pipeline restart, but just a change in the way it is exported (currently, among others, using trucks),” he said.
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