BP And UAE Suspend $2 Billion Gas Deal In Israel Amid Gaza Conflict

BP and a state-owned oil company from the UAE have decided to halt negotiations for the acquisition of a 50% stake in Israel's primary natural gas producer, citing heightened risks associated with the ongoing conflict in Gaza.

NewMed Energy, the Israeli company involved in the deal, announced the suspension of discussions, noting the adverse external environment created by the war in Gaza. I Photo: NewMed Energy X

Hanna Ziady reported for CNN that the $2 billion deal, which would have marked a significant investment in Israel's energy sector, has been put on hold due to uncertainties stemming from the conflict.

NewMed Energy, the Israeli company involved in the deal, announced the suspension of discussions, noting the adverse external environment created by the war in Gaza.

While BP and Abu Dhabi's Adnoc expressed continued interest in the transaction, they emphasized the need to reassess the situation before resuming talks.

The decision reflects the broader impact of geopolitical tensions on business activities in the Middle East, with companies facing increased scrutiny and operational challenges amidst regional conflicts.

The suspension of the gas deal underscores the complexities and risks associated with conducting business in volatile regions, highlighting the sensitivity of investments to geopolitical dynamics.

In Tel Aviv, NewMed Energy's shares experienced a notable decline following the announcement, indicating the market's reaction to the uncertainties surrounding the deal.

The development underscores the need for companies to carefully evaluate geopolitical risks and their potential impact on investment decisions, particularly in regions experiencing heightened instability.

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