THE uncertainty caused by the ongoing war in Gaza prompted the Abu Dhabi National Oil Company and the UK’s energy giant British Petroleum to suspend talks about purchasing a 50 percent stake in Israel’s leading natural gas producer NewMed Energy.
The companies canceled the $2 billion deal amid concerns that the raging war in Gaza will create too many risks for future negotiations.
Shares of Israel’s NewMed Energy dropped to as low as eight percent in Tel Aviv due to the conflict.
The three companies have indefinitely suspended the talks until they are ready to resume negotiations once the security situation in the region improves.
The ongoing war in the besieged enclave has spread to Lebanon and the Red Sea as Iran-backed groups that form part of the so-called Axis of Resistance launched attacks toward Israeli targets to show solidarity with the Palestinians.
The signing of the Abraham Accords in 2020 allowed the UAE and Israel to maintain trade connections despite the war in Gaza. Countries that have signed the historic initiative believe the political agreement could generate billions of dollars in investment.
