Israel has shut down production at its largest natural gas field, Leviathan, operated by Chevron Corp., following a wave of airstrikes on Iran. The move, driven by security concerns, has disrupted regional energy flows and heightened fears of a wider conflict in the Middle East—home to some of the world’s most vital fuel supplies.
Israel’s Energy Ministry confirmed the decision, stating the production halt was a precautionary measure. “Our people and facilities are safe,” Chevron said, deferring additional questions to Israeli officials.
Energean Plc also suspended output from its operations in Israel, including the Karish field, which serves domestic demand but plays a role in the broader fuel balance.
The disruption is already having ripple effects. Egypt, heavily reliant on Israeli gas imports, has reduced supply to some industries and switched to diesel in power plants “as a precautionary measure,” according to the Egyptian energy ministry.
The timing couldn’t be worse. Summer demand is climbing in Egypt, and the country—already grappling with declining domestic production—faces a potential scramble for alternative fuel. “To fully replace Israeli pipeline imports, Egypt and Jordan between them would require another 10-12 LNG cargoes per month,” said Laurent Ruseckas, director at S&P Global Commodity Insights.
The Leviathan field, located in the eastern Mediterranean, normally supplies gas to Israel, Egypt, and Jordan. Exports to Egypt and Jordan alone account for around 35 million cubic meters of gas per day.
While production at Chevron’s Tamar field continues, the situation remains fragile. Energean’s halted Karish field may further tighten local supplies. Egypt is expediting efforts to bring floating LNG terminals online, but only one is currently operational.
Global markets reacted swiftly—European gas prices surged as much as 6.6% on Friday, underscoring the global implications of Middle Eastern energy shocks.
If the Israeli outages persist, analysts warn that “additional demand for cargoes could build quickly,” potentially straining LNG markets and driving up prices globally.
