Over the past several months, Israel and its Arab neighbors have begun forging new alliances and peace deals, which normalize relations between former foes and encourage greater economic and diplomatic collaboration. The energy sector has been an attractive one among these peace deals, which could not only boost economic opportunities for the region but also encourage a better political and diplomatic relationship between countries that have historically shared fragile ties. Now, as more Arab nations are set to normalize ties with Israel, and with energy cooperation as a critical component of many of these deals, a peaceful and prosperous Middle East may be on the horizon.
August 2020 marked a pivotal moment in Middle East relations and sparked cooperation among key regional players. Israel, the United Arab Emirates, and Bahrain signed the Abraham Accords, a joint statement which marked the normalization of relations between Israel and the two Arab countries, for the first time since 1994. Soon after, Sudan followed suit.
Following the establishment of the Accords, cooperation between Israel and Arab nations in the energy sector has begun to flourish. For example, in late September, the EastMed Gas Forum (EMGF) was established, bringing together Egypt, Israel, Greece, Cyprus, Italy, Jordan, and the Palestinian Authority, which are all nations that host key investors, producers, and consumers of energy. As natural gas exploration, particularly in the massive reserves recently found in the Eastern Mediterranean, continues to grow, this Cairo-based organization will seek to promote regional cooperation between Arab and European nations. Thus far, the formation of the intergovernmental organization has resulted in contracts to export Israeli gas to Jordan and Egypt, which amount to $30 billion.
The EMGF is a landmark effort to enhance multilateral cooperation around energy issues in the Middle East and the Mediterranean, and experts predict it will generate significant financial benefits for the bloc. The EMGF is a prime example of energy diplomacy. The Forum has created a rare opportunity for the Palestinian Authority to sit at the same table as its traditional enemy, Israel. It has also brought together Turkey, Greece, and Cyprus, despite the ongoing disputes between the nations over offshore drilling rights. Since its establishment, large powers such as France have requested to join the bloc, and the US and EU have requested observer status. Given the rising prominence and potential impact of the EMGF, there is hope that the new entity could create avenues for assuaging tensions in the region and promoting peace. Current analysis predicts the EMGF will re-establish energy pathways and influence in the Middle East, and this could present new opportunities for collaboration as well.
The promises of energy diplomacy are also visible between Israel and Lebanon. The two Middle Eastern nations are technically still at war. However, in November, the two countries completed their third meeting on a disputed maritime border, at the behest of the United States. The talks marked a significant turn in the two nations’ relations and were considered by experts as a groundbreaking milestone that could have longstanding consequences. Energy issues have been an important topic during these discussions. Israel’s Energy Minister Yuval Steinitz appointed the Israeli delegation for the talks, and the team is headed by Israel’s Energy Ministry director-general Udi Adiri. Energy is, therefore, a vital component of these ongoing diplomatic dialogues, which could produce significant benefits to both sides.
The economic benefits of an Israel-Lebanon collaboration around energy are increasingly becoming evident. A formal agreement would allow Lebanon to explore natural gas fields under the Mediterranean Sea, providing the Lebanese economy with a severely needed boost. Such a deal would also allow Israel to augment its regional prowess in the energy space. As the potential benefits of energy cooperation between the two nations continue to grow, it will likely encourage a thaw in relations between the longstanding foes, and radically transform the geopolitical nature of the region.
The Middle East is a region that has been riddled with diplomatic tensions for decades, despite numerous attempts at establishing long-term peace. However, the recently signed Abraham Accords could generate long-term peace in the Middle East by encouraging greater collaboration in the energy sector, which is integral to many of the economies in the region. As the financial benefits of such cooperation become increasingly apparent, it could encourage Middle Eastern nations to foster and maintain peaceful relationships, in order to take advantage of the economic prosperity afforded by such agreements. The geopolitical history of the Middle East has been a complex one. But energy diplomacy may be the fuel the region needs to achieve peace and stability.
