A once promising peace pact between Israel and Egypt, sealed back in 1979, appears to be unraveling. The relationship between these neighboring nations, historically a beacon of regional stability, has cooled significantly. Recent political maneuvers and statements have only served to underscore the growing distance between them.

Controversy Over Rafah Crossing and Refugee Concerns

At the heart of the current tensions is the Rafah border crossing, a critical point linking Egypt with the Gaza Strip, which is controlled by Israel. Israel’s recent unilateral decision to open this crossing has alarmed Egyptian authorities, who fear a potential influx of refugees. In response, Egypt has called for the opening to be bilateral, allowing movement in both directions, and has also expressed concerns over the permeability of other Israeli border crossings with Gaza.

Israel’s former Foreign Minister, now Energy Minister, Eli Cohen defended the decision, stating on 103fm radio that facilitating escape from conflict zones is a common international practice. He emphasized Israel’s intent to allow Gazans a route out of the conflict-ridden area.

Political Statements and Absences

Further straining relations, Egyptian President Abdel Fattah al-Sisi recently labeled Israel as an enemy. His harsh critique of Israel’s actions in Gaza, which he equated to genocide, marked a significant public relations low in the countries’ interactions. Notably, Israeli Prime Minister Benjamin Netanyahu was conspicuously absent from the signing of a Gaza peace agreement in Cairo, an event attended by U.S. President Donald Trump, highlighting the strained relations.

Strategic Energy Deals in Limbo

Despite these tensions, in August, before a ceasefire in Gaza, Israel and Egypt signed a historic $35 billion gas deal involving supplies from Israel’s Leviathan gas field. This agreement, the largest in Israel’s history, positions it as a key energy supplier in the region. However, the deal awaits final approval from Minister Cohen, who has vaguely cited the need to prioritize Israel’s national interests and the strength of the peace agreement.

The delay is also tied to Israel’s demand for Egypt to withdraw its recently deployed troops in Sinai, adding another layer of complexity to the bilateral relations.

US Involvement and Regional Implications

The United States has taken an active role in these developments, pushing for the approval of the gas deal as part of President Trump’s broader Middle East peace plan. Uzi Rabi, a Middle East expert from Tel Aviv University, views this as an attempt to fortify regional stability through economic interdependence, linking not just Israel and Egypt, but also Greece and Cyprus in an energy network.

Egypt’s urgent energy needs due to its faltering power sector add a layer of immediacy to the negotiations. Meanwhile, the potential for a high-profile bilateral meeting between Netanyahu and al-Sisi in Florida looms, though its occurrence remains uncertain.