Egypt Seeks to Expand Economic Ties with Israel Amid Political Stalemate

Despite ongoing political tensions between Israel and Egypt, particularly over the Gaza Strip, Cairo is expressing interest in deepening economic cooperation with Israel, according to a report by Kan News. While diplomatic relations remain strained, Egypt aims to increase trade volume with Israel and hopes to host Israeli economic delegations. Efforts are underway to involve the United States in advancing trade discussions.

In parallel, the two countries maintain extensive collaboration in the energy sector. However, political friction is evident in Egypt's continued refusal to approve the appointment of Uri Rotman as Israel's ambassador to Cairo, a move linked to the Gaza conflict and strained relations with the Israeli government.

Recently, an Israeli military delegation visited Cairo and met with Egyptian army officers, even watching a soccer match between Argentina and Egypt together. According to a Saudi newspaper citing an Egyptian source, talks included advancing to the second phase of U.S. President Donald Trump's Gaza plan, including discussions on Hamas' weapons handover. The Israeli delegation reportedly conveyed through UN envoy Nikolay Mladenov that failure of current efforts could lead Israel to military confrontation and renewed fighting in Gaza. The Egyptian source expressed concern that Prime Minister Benjamin Netanyahu might initiate military action in Gaza for political reasons related to upcoming Israeli elections, aiming to rally public support through a military operation.