Israel stopped supplying natural gas to Egypt on Sunday for the second time without prior notice, as regional tensions intensify following recent escalations with Iran, Asharq Business with Bloomberg reported.
Meanwhile, President Abdel Fattah El-Sisi has instructed the government to take all necessary financial and commodity precautions in light of ongoing developments and the escalating situation in the region.
According to Bloomberg, Israel has not restarted production at the Leviathan deepwater field in the Mediterranean since the outbreak of war with Iran. The gas that has been gradually pumped came instead from the Tamar field.
Since 2020, Egypt has relied on Israeli gas to supplement its energy needs. In 2024, it expanded regasification capacity by leasing a unit from Australia’s Hoegh Galleon amid declining domestic production and irregular Israeli supplies due to the ongoing war on Gaza.
On June 13, Egypt's petroleum ministry said in a statement that gas supplies from the east had stopped, without naming Israel. Days later, Israeli Energy Minister Eli Cohen said the country might resume exports to Egypt.
Local demand for gas in Egypt averages 6.2 billion cubic feet per day and is expected to rise in the summer due to increased electricity consumption.
In a statement from the presidency, El-Sisi emphasized the need to strengthen financial and commodity precautions. He also urged the government to continue its fiscal discipline measures to improve the economy, while expanding social protection programs and support for priority groups.
Separately, the Egyptian pound showed relative stability on Sunday, dropping just 0.14 Egyptian pounds against the US dollar, according to central bank data.
