U.S. Energy Secretary Cancels Israel Visit Amid Dispute Over $35B Egypt Gas Deal

U.S. Secretary of Energy Chris Wright has canceled his scheduled visit to Israel next week in protest over Energy and Infrastructure Minister Eli Cohen’s refusal to sign off on a landmark natural gas export deal with Egypt, diplomatic sources confirmed Thursday.

The $35 billion agreement spearheaded by the Israel Natural Gas Lines Company (INGL) and backed by the Tamar Partnership, Leviathan Partnership, and Energean would establish a new export pipeline to Egypt, significantly expanding Israel’s role in the regional energy market.

Cohen has withheld approval of the deal, demanding stronger guarantees for Israeli strategic and economic interests. He cited concerns about fair pricing for domestic consumption and Israel’s long-term energy security.

“Natural gas is a strategic asset that strengthens Israel’s economic and diplomatic standing worldwide,” Cohen said last week. “My policy is to attract international energy giants to invest in Israel and to expand production both for domestic use and export.”

The cancellation comes as the Trump administration increases pressure on Israel to finalize the deal, which U.S. officials see as a cornerstone of broader Middle East economic cooperation. President Trump has reportedly urged both Prime Minister Benjamin Netanyahu and Cohen to greenlight the deal, viewing it as critical to regional stability and U.S. energy diplomacy.

Complicating matters, the Israeli government has also approved Cairo’s request to send personnel and equipment into Israel to assist in recovering the remains of slain hostages, part of ongoing efforts to normalize sensitive bilateral coordination amid the Gaza conflict.

At the same time, Israel has intercepted multiple drones attempting to smuggle weapons over the Egyptian border, raising additional concerns about the security dimension of any cross-border infrastructure project.

The gas deal would be funded entirely by the exporting companies and is valued at approximately NIS 2 billion ($530 million) in infrastructure development costs.

While the energy agreement is seen as a lucrative and strategic step, domestic politics and regional tensions have delayed its finalization. Israel’s security establishment is reportedly in favor of advancing the deal, but Cohen remains unmoved without further concessions.

Wright’s canceled visit highlights the fragility of U.S.-Israel energy relations at a time when regional realignments, including the Trump administration’s diplomatic push, demand close coordination.

As the situation develops, further announcements from both Jerusalem and Washington are expected in the coming days. Share this article or subscribe to our newsletter for updates.