Egypt faces critical choice as Israel raises gas costs 40%

Israel is turning up the heat in the economic arena—and hitting Egypt right where it hurts: its gas supply. According to a report in Al-Araby Al-Jadeed, Cairo was blindsided by Israel’s demand to jack up the price of natural gas by 40% as a condition for meeting Egypt’s request to boost imports ahead of the scorching summer months. With electricity demand surging in Egypt during the heat, the country’s reliance on Israeli gas has become a glaring vulnerability—one that Jerusalem seems all too eager to exploit.

How Did Egypt Become Dependent on Israeli Gas?

A decade ago, Egypt was a major gas exporter, its fields fueling regional influence. But a steep drop in domestic production, coupled with soaring internal demand, flipped the script—transforming Egypt into a net importer. Today, a hefty chunk of its gas flows from Israel’s Tamar and Leviathan reservoirs, piped through Jordan to power Egypt’s homes, factories, and even its ambitions to re-export liquefied natural gas (LNG) to Europe. Yet since the latest Gaza war, Cairo has had to slash LNG exports due to shortages, deepening its dependence on Israel—a leverage point Jerusalem isn’t shy about pressing.

Trump’s Playbook? Netanyahu Hikes the Price

Israel’s demand for a 40% price hike is no random jab. It’s a first-rate business move, sure—pumping revenue into state coffers—but it’s also laced with a sharp political message: Israel won’t let its regional clout be ignored. Timing matters here. One theory ties this to Egypt’s steadfast refusal to take in Gazan refugees fleeing the war-torn Strip. For months, Israel has urged Cairo to open Sinai to displaced Palestinians, only to hit a brick wall—Egypt fears a demographic shake-up it can’t control. Now, Jerusalem might be flexing an economic lever: if pressure pays, why not profit too?

Egypt Pushes Back—For Now

Reports say Egypt flatly rejected Israel’s demand, kicking the gas price talks to their next meeting. But this isn’t over. With summer temperatures looming, Cairo can’t easily shrug off its need for Israeli gas. The gambit echoes Donald Trump’s deal-making ethos—sentiment-free, all about winning. “It’s a great deal, or no deal at all,” you can almost hear Netanyahu say, channeling the former U.S. president he’s long admired. When it comes to neighbors, Israel’s prime minister isn’t afraid to play hardball.

Will Egypt Cave?

For the moment, Cairo’s holding firm, unwilling to swallow the new price tag. But time’s ticking—summer’s closing in, and Egypt’s options are thinning. If Israel keeps the screws on, the Egyptians might find themselves cornered, forced to choose between pride and power grids.