US Energy Secretary Chris Wright has cancelled his planned six-day visit to Israel next week, Israeli media reported.
The move came after Israel’s Energy Minister Eli Cohen refused to approve a landmark $35 billion natural gas export agreement with Egypt, defying pressure from Washington and operator Chevron until what he described as “fair prices” are set for domestic consumers.
The deal, signed in August by partners in Israel’s Leviathan gas field, would be the country’s largest export contract, but Cohen’s office said he will not sign off until local pricing terms are settled.
Cohen’s public stance is seen as a rare open challenge to the Trump administration, which is pushing for closer energy cooperation between Israel and Egypt as part of broader regional initiatives.
Efforts have been underway to sort out political disputes between Israel and Egypt, including over Gaza after the US sponsored ceasefire deal, which was signed in Egypt’s Sharm el-Sheikh on October 13.
Cohen’s office said negotiations with Chevron are ongoing and that Israel’s domestic market must remain “attractive.” Israel’s Finance Ministry has warned that rising consumption could lead to a gas shortfall within 25 years.
Egypt currently imports Israeli gas via an undersea pipeline and re-exports part of it as liquefied natural gas.
On August 14, Egyptian Prime Minister Mostafa Madbouly said the gas agreement signed with “NewMed Energy,” a partner in Israel’s Leviathan gas field, was an extension of the 2019 deal until 2040.
Cairo accuses Netanyahu of exploiting gas politics
The dispute comes amid renewed friction between Prime Minister Benjamin Netanyahu and Egyptian officials, who accuse him of trying to exploit the gas issue for political gain.
When early reports suggested that Netanyahu was considering suspending the deal, an Egyptian official declared that if the Israeli president believes Egypt has only one path for energy and gas, “he is delusional.”
“Netanyahu can’t bear the economic and political consequences” of abolishing the gas deal, Diaa Rashwan, the head of the State Information Service (SIS), said in televised statements at the time.
“The Egyptian administration has alternatives and scenarios for what may happen, and Netanyahu is trying to export a crisis to Egypt,” he added.
The agreement would bring in hundreds of millions of shekels in state revenue through royalties and taxes, but has stirred debate over balancing export profits with future domestic supply, according to Israeli media.
