Israel will leverage East Mediterranean assets

Significance

The deal -- designed to allow Delek to focus on the larger Leviathan field -- highlights the growing commercial interest in East Mediterranean hydrocarbons. It also underlines the intersection with political developments, including Emirati normalisation with Israel and the regional anti-Turkish alliance.

Impacts

• Abu Dhabi will increase political engagement and again try to gain observer status at the EMGF.
• On top of hydrocarbons links, electricity cooperation is likely to rise up the regional agenda.
• The United States, EU and NATO could increase their focus on calming regional tensions through inter-state dialogue.