Israel Freezes $35B Leviathan Gas Deal; US Visit Canceled

Israeli Energy Minister Eli Cohen refused to sign a $35 billion agreement to export natural gas from the Leviathan field to Egypt until Israeli interests are secured and a “fair price” for the domestic market is agreed, saying his decision followed heavy pressure from U.S. officials and energy firm Chevron. U.S. Energy Secretary Chris Wright canceled a planned six-day visit to Israel after Cohen’s announcement. The deal, announced in August as the largest gas-export agreement in Israel’s history and expected to generate substantial royalty and tax revenues, is now frozen amid concerns about preserving domestic supply. Israel’s finance ministry has warned the pact could lead to future gas shortfalls and higher consumer prices if domestic needs are not protected. Cohen’s public refusal risks straining ties with the United States and Egypt as Washington presses for ratification to support broader regional initiatives.