On June 13, 2025, Israel's Energy Ministry ordered the shutdown of the Leviathan gas field in response to escalating regional threats following military actions against Iranian targets.

Chevron, the operator of Leviathan, confirmed the shutdown, which is already affecting gas supply to Egypt, a country that heavily relies on Israeli gas.

Leviathan is Israel's largest energy asset, containing 22.9 trillion cubic feet of recoverable gas, and had been exporting record amounts to Egypt, peaking at 981 million cubic feet per day in 2024.

The Leviathan gas field is a significant source of energy for both Israel and Egypt, impacting energy security and economic relations between the two nations.

The decision to shut down the field comes amid escalating tensions in the region, which have heightened security concerns.

This abrupt timing follows recent announcements about expanding Leviathan's capacity to serve European markets, now facing uncertainty due to the ongoing conflict with Iran.

The situation has triggered a spike in European gas prices, which rose by 6.6% on the day of the announcement, highlighting vulnerabilities in energy supply chains in the Eastern Mediterranean.

Israel's response reflects its strategic priorities in the face of perceived threats from Iran, indicating a potential shift in energy policy as geopolitical dynamics evolve.

Egypt faces a supply crunch as it approaches peak summer demand and may need to resort to expensive emergency LNG imports due to the disruption.

While Chevron's Tamar field remains operational and Energean's Karish field is meeting domestic demand, continued shutdowns could strain Egypt's LNG export capacity and its power grid.

With declining domestic gas production, Egypt has increasingly depended on Israeli imports to meet its energy needs, particularly as it aims to boost LNG exports.