Watan-The American network CNN reported that British Petroleum and a state-owned oil company from the United Arab Emirates have decided to postpone negotiations to purchase a 50% stake in a leading Israeli natural gas production company, considering the $2 billion deal highly risky amidst the escalating war in Gaza.
This marks the first direct announcement of the impact of UAE’s economic relations with the Zionist occupation following the brutal aggression on Gaza since October 7, 2023.
NewMed Energy company stated on Wednesday that the two companies agreed to “suspend discussions” regarding the deal “due to the uncertainty created by the external environment.”
NewMed Energy stated, “There is no certainty that discussions will resume or that an agreement will be reached in the future, nor regarding the terms of the agreement if reached.”
British Petroleum declined to comment after confirming NewMed’s statement content, and Adnoc also refrained from commenting. NewMed Energy’s stocks dropped up to 7% in Tel Aviv.
Impact of the War
According to sources, this development highlights the impact of the Gaza war on companies operating in the Middle East.
Many Western brands, including Starbucks, McDonald’s, KFC, and Pizza Hut, faced boycotts in the region by customers who perceive them to support the Israeli war in Gaza or have ties to it.
British Petroleum had announced the proposed investment in NewMed Energy less than a year ago as part of a plan to form a joint venture with Adnoc to extract natural gas in “mutually interested areas,” including the Eastern Mediterranean.
The proposed deal was widely seen as evidence of deepening financial relations between Israel and the UAE following the normalization of diplomatic relations in 2020.
BP and Adnoc were supposed to acquire 50% of NewMed Energy by purchasing publicly traded company shares, in addition to a portion of the stake owned by Delek, an Israeli energy group.
Largest Gas Reservoir
According to CNN, the proposed and currently frozen deal is widely seen as evidence of deepening financial relations between the Israeli occupation and Abu Dhabi following the normalization of diplomatic relations in 2020.
However, the war has strained those relations, with the UAE repeatedly calling for an “immediate cessation of hostilities” in Gaza while clandestinely providing it with all forms of support.