Israeli Prime Minister Benjamin Netanyahu announced the approval of a $35 billion natural gas export deal to Egypt, the largest in Israeli history. This agreement is expected to facilitate the delivery of gas to Egypt over the next 15 years, with U.S. energy company Chevron playing a significant role as a key owner of the gas field located off Israel's Mediterranean coast. The deal is projected to contribute substantial revenue to Israel's state budget, with half of the proceeds allocated to state coffers.

In a recorded video statement, Netanyahu emphasized that the deal enhances Israel's status as a regional energy power and contributes to stability in the region. Egypt, which shares borders with both Israel and Gaza, has acted as a mediator between Israel and the Palestinian militant group Hamas, particularly in the context of a U.S.-brokered ceasefire established in October. However, Egypt has also criticized Israel's military actions, which have resulted in significant casualties and destruction in Gaza.

The announcement of the gas deal follows previous delays attributed to Israeli Energy Minister Eli Cohen, who had expressed concerns over the terms being unfavorable to Israel. Cohen, who was previously at odds with the deal, publicly supported the final terms during the announcement alongside Netanyahu.

In a related development, Germany's lawmakers approved an expansion of a defense agreement for Israel's Arrow 3 missile defense system, increasing the deal's value from $3.5 billion to $6.5 billion. This expansion is part of Germany's efforts to bolster its air defenses amid rising tensions with Russia.