Egypt has secured its largest-ever liquefied natural gas (LNG) import agreements, reaching deals with major global energy firms and trading houses to purchase between 150 and 160 cargoes through 2026. The move underscores Cairo’s urgent need to stabilize power supplies after enduring two years of rolling blackouts, even as the country grapples with a mounting economic crisis.

Once an LNG exporter aiming to supply Europe, Egypt was forced to revert to net importer status in 2023 due to a steep decline in domestic gas production. The new purchases, valued at over $8 billion based on current prices, represent a strategic attempt to meet surging electricity demand during peak seasons — albeit at a heavy cost to an economy already strained by inflation, currency devaluation, and a ballooning fiscal deficit.

European natural gas prices soared on Friday following a series of Israeli airstrikes on Iran, sparking renewed fears of a broader regional conflict that could imperil key global energy routes. The benchmark Dutch front-month gas futures jumped as much as 6.6%, the sharpest increase in more than five weeks, climbing to €38.13 per megawatt-hour by midday in Amsterdam. The surge came amid parallel gains in oil markets, underscoring investor anxiety over a potential supply shock.

The Israeli strikes targeted Iranian nuclear infrastructure and killed senior military officials, in what Tehran has condemned as a major provocation. Iran has vowed retaliation, warning that Israel will “pay a very heavy price,” raising the specter of further instability in the Gulf — a vital artery for global energy flows.

The sudden military strike by Israel on Iranian targets—focusing on nuclear and military infrastructure—has jolted global energy markets, injecting fresh volatility into an oil sector already weighed down by weak economic signals and oversupply anxieties. Brent crude prices surged over 13% in response to the escalation, reflecting investor fears that a broader regional conflict could destabilize vital energy corridors and infrastructures across the Middle East.

Until now, the oil market narrative had been dominated by talk of sluggish industrial activity in China, muted demand in Europe, and production increases by members of the OPEC+ alliance. These conditions had pointed to a potential supply surplus heading into the second half of 2025. But Israel’s pre-emptive strike on Iran—reportedly aimed at military command structures and nuclear scientists—has radically shifted the outlook.