BP abandons £1.6bn Israeli fuel deal because of the conflict in Gaza

Israel deal: BP is eager to develop its presence within the Eastern Mediterranean

BP and the United Arab Emirates’ state-owned power firm Adnoc have suspended a deal to purchase a £1.6billion stake in an Israeli fuel group amid the conflict in Gaza.

The firms had supplied to purchase a 50 per cent stake in Newmed a yr in the past.

But negotiations have been thrown into doubt in October after Hamas militants invaded Israel from Gaza.

Newmed stated yesterday that the method has been placed on maintain because of ‘uncertainty created in the external environment’ – understood to imply the conflict.

The supply from BP and Adnoc had been hailed as a landmark second as a result of it underlined the bettering relationship between Israel and the Arab world.

Israel and the UAE solely formally recognised one another in 2020. 

But the UAE has repeatedly condemned Israel for what it has described because the ‘catastrophic and dangerous humanitarian situation’ in Gaza.

Newmed stated it was nonetheless eager to finish the deal. It is the biggest stakeholder in a large fuel subject, Leviathan, which provides fuel to Israel, Egypt and Jordan.

BP and Adnoc stated final month they might work collectively on pure fuel tasks in Egypt.