Israel-Lebanon Sea Boundary Row Obstructs Energy Development

Water border marks in the Mediterranean sea next to Rosh Hanikra, near Haifa at the Israel-Lebanon border, 06 June 2022. (EPA)
Water border marks in the Mediterranean sea next to Rosh Hanikra, near Haifa at the Israel-Lebanon border, 06 June 2022. (EPA)
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Israel-Lebanon Sea Boundary Row Obstructs Energy Development

Water border marks in the Mediterranean sea next to Rosh Hanikra, near Haifa at the Israel-Lebanon border, 06 June 2022. (EPA)
Water border marks in the Mediterranean sea next to Rosh Hanikra, near Haifa at the Israel-Lebanon border, 06 June 2022. (EPA)

A dispute between Israel and Lebanon over their maritime boundary has obstructed energy exploration in the eastern Mediterranean and risks exacerbating tensions between two foes.

After months of deadlock in US-mediated talks, Beirut on Sunday warned against any activity in the disputed area, responding to the arrival of a vessel to develop a field for Israel.

Lebanon has said the field in question, Karish, is in disputed waters. Israel denies this.

Here's what you need to know about the standoff:

What’s at stake?
Gas - potentially a lot of it.

Lebanon and Israel are located in the Levant Basin, where a number of big sub-sea gas fields have been discovered since 2009. Israel already produces and exports gas.

But while Israel has moved ahead, Lebanese hopes of producing energy have been hamstrung by political paralysis.

Lebanon's one and only attempt at drilling - an exploratory well in 2020 - found gas traces but no reservoirs, according to France's Total, part of a consortium with Italy's ENI and Russia's Novatek that was awarded Lebanon's first oil and gas offshore license in 2018.

A gas find would be a major boon for Lebanon, which has been mired in financial crisis since 2019. Eventually, such a discovery could fix Lebanon's long-standing failure to produce adequate electricity for its population.

Israeli officials have previously said they hoped the negotiations would take a short time and that an agreement would strengthen both countries' economies.

But while an agreement could allow both sides to benefit, the issue could risk conflict if unresolved.

Lebanon is home to the heavily armed, Iran-backed Hezbollah, which has fought numerous wars with Israel and has previously warned Israel against drilling in the disputed zone.

What is the dispute over?
Lebanon and Israel are at odds over the boundary separating their exclusive economic zones - an offshore area that a country can claim for resource extraction.

Israel claims the boundary runs further north than Lebanon accepts, while Lebanon claims it runs further south than Israel accepts, leaving a triangle of disputed waters.

After indirect negotiations began in 2020, Lebanon expanded its claim. Israel then did the same.

Karish became part of the zone Lebanon was disputing after Beirut expanded its claim, according to Laury Haytayan, a Lebanese oil and gas expert.

Lebanon has stated that Karish was in the disputed area in a letter to the United Nations, the presidency said on Sunday.

Israel says Karish field, discovered more than a decade ago, is in its exclusive economic zone. Israeli Energy Minister Karin Elharrar said the Lebanese account was "very far from reality".

What does Hezbollah think?
Hezbollah has been a sworn enemy of Israel since it was established in 1982 by Iran's Revolutionary Guards. The group has said the talks are not a sign of peace-making and threatened action if Israel violates Lebanese rights.

But Hezbollah is more deeply involved than ever in Lebanese state affairs, and wants to see Lebanon's offshore energy resources developed. It has not stood in the way of the US-mediated indirect talks and has said it will agree to whatever the government agrees.

Is there a risk of conflict?
The last major war between Israel and Hezbollah in Lebanon was in 2006. The border area has remained largely calm since. Analysts believe both sides want to avoid another conflict.

But Hezbollah leader Hassan Nasrallah said last year Israel was wrong if it thought it could act as it pleased before a solution was reached, and the group would "act accordingly" when it finds that Lebanese oil and gas is in danger.

Following the latest spat, Lebanon said it would invite a US envoy to resume negotiations to prevent any escalation and Israel's defense minister said the matter was a civilian issue to be resolved diplomatically.



US-Ukraine Minerals Deal: What We Know

FILE - President Donald Trump, right, meets with Ukrainian President Volodymyr Zelenskyy in the Oval Office at the White House, Feb. 28, 2025, in Washington. (AP Photo/ Mystyslav Chernov, File)
FILE - President Donald Trump, right, meets with Ukrainian President Volodymyr Zelenskyy in the Oval Office at the White House, Feb. 28, 2025, in Washington. (AP Photo/ Mystyslav Chernov, File)
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US-Ukraine Minerals Deal: What We Know

FILE - President Donald Trump, right, meets with Ukrainian President Volodymyr Zelenskyy in the Oval Office at the White House, Feb. 28, 2025, in Washington. (AP Photo/ Mystyslav Chernov, File)
FILE - President Donald Trump, right, meets with Ukrainian President Volodymyr Zelenskyy in the Oval Office at the White House, Feb. 28, 2025, in Washington. (AP Photo/ Mystyslav Chernov, File)

Washington and Kyiv have signed a new minerals deal that will see the United States invest in Ukraine's rare earth and other deposits as it seeks to reduce military aid to the war-torn country.

The deal came together after US President Donald Trump demanded compensation for US aid given to Ukraine under his predecessor Joe Biden's administration, and follows weeks of delays following a spat in late February between Trump and Ukrainian leader Volodymyr Zelensky, AFP said.

Here's what we know about the agreement -- which lacks any explicit security guarantees for Ukraine:

- What's in the deal? -

Under the terms of the deal announced on Wednesday, Ukraine and the United States will establish a joint Reconstruction Investment Fund.

The fund will be controlled by a company with "equal representation of three Ukrainian and three American board members," the US Treasury Department said in a statement.

The agreement covers 57 types of resources, including oil and gas.

If the United States decides to buy the resources, they will be given "first choice to either acquire them or designate the purchaser of our choice," the Treasury Department said.

The new fund "will receive 50 percent of royalties, license fees, and other similar payments from natural resource projects in Ukraine," according to the US Treasury.

Its profits will be invested exclusively in Ukraine for the first 10 years, after which profits "may be distributed between the partners," Kyiv said.

What resources does Ukraine have?

Ukraine holds about five percent of the world's mineral resources and rare earths, according to various estimates.

But work has not yet started on tapping many of the resources and a number of sites are in territory now controlled by Russian forces.

Ukraine also has around 20 percent of the world's graphite, an essential material for electric batteries, according to France's Bureau of Geological and Mining Research, and is a major producer of manganese and titanium.

It also says it possesses one of the largest lithium deposits in Europe, which is yet to be extracted.

Kyiv says "rare earth metals are known to exist in six deposits" and an investment of $300 million would be needed to develop a deposit at Novopoltavske, which it claimed was one of the world's largest.

Does Ukraine have to repay the US?

Trump demanded compensation for US aid given to Ukraine under his predecessor Joe Biden's administration.

But under the terms of the deal signed this week, Ukraine will not be asked to pay back the billions of dollars it has received from the United States since Russia's invasion of the country in February 2022.

New military aid from Washington will be counted as its contribution to the fund, according to the text of the agreement.

Ukraine said it will maintain full control over its subsoil, infrastructure and natural resources throughout the process.

Kyiv noted that the agreement does not impact its bid for integration with the European Union.

What does US support mean for Ukraine?

Ukraine has said any deal would need to include long-term and robust security guarantees that would deter Russia from attacking again.

But the text does not place any specific security obligations on the United States.

It simply says that the United States "supports Ukraine's efforts to obtain the security assurances necessary to build a lasting peace."

However, a US Treasury statement notably mentioned Russia's "full-scale invasion" of Ukraine -- diverging from the Trump administration's usual formulation of a "conflict" for which Kyiv bears a large degree of responsibility.

"This is win-win for both sides," US Treasury Secretary Scott Bessent told Fox Business on Thursday.

"I think this is a strong signal to the Russian leadership," he said.