A new maritime deal with Israel could be an economic lifeline for Lebanon—if the government in Beirut can get its act together.

 Israel and Lebanon signed a breakthrough agreement establishing a permanent maritime boundary between them in the Eastern Mediterranean Sea. The two countries have technically been at war since 1948, and the deal was the result of more than 12 years of negotiations, most recently spearheaded by U.S. diplomat Amos Hochstein and his team at the U.S. State Department.

Governments around the world praised the agreement. U.S. President Joe Biden noted that “Energy—particularly in the Eastern Mediterranean—should not be a cause for conflict but a tool for cooperation, stability, security, and prosperity.” French President Emmanuel Macron lauded the deal as “an important step towards more peace for Israel, for Lebanon, and all the countries and peoples of the region” and said it would “also contribute to the prosperity of both countries.”

Several countries in the gas-rich Eastern Mediterranean—such as Egypt and Cyprus—have taken steps to explore their offshore reserves in recent years. Israel began commercial oil and natural gas extraction several years ago, and Lebanon has explored the prospect since 2021. But doing so without an agreed-on maritime boundary was risky for both countries—and potential investors.

Israel drew up a development plan for gas exploration in 2017 and signed a gas export deal with Egypt and the European Union in 2022. Extraction and production off Israel’s coast are already underway, and sales are expected to reach their maximum capacity this summer. Lebanon, however, lags behind—even though it is desperate for the economic and financial relief that an oil and gas sector could potentially bring. In January, the government in Beirut signed an agreement with France’s TotalEnergies, Italy’s Eni, and QatarEnergy to start exploration later this year. However, some experts project a timeline of five to six years before Lebanon can produce oil and gas if commercially viable reservoirs are found. Lebanon’s maritime borders with Cyprus and Syria are also yet to be clearly demarcated, leaving other potential reserves inaccessible.