Israeli-Lebanese Deal

Will the deal prove feasible amidst historical rivalries and a major policy shift for Lebanon as the Hezbollah and Hamas look on?

By Dr. Farah Naz | December 2022

Recently, Israel and Lebanon, two neighbouring but hostile countries technically at war, officially signed a maritime border deal, setting a new trend in regional politics. Since then, there are several concerns raised by analysts across the world such as whether the deal led to ending a long-running dispute over their 330-square-mile maritime border and opened the door to offshore energy exploration in the Mediterranean Sea or whether Lebanon has recognised Israel unofficially. To address some of these concerns, let’s reflect on the maritime border issue between Israel and Lebanon.

The maritime border remained a long-running conflict between Israel and Lebanon. Both countries claim equal/same share over the stretch of ocean in the Eastern Mediterranean waters. It is not limited to a dispute over shared waters alone but the potential richness of the waters in terms of oil and gas deposits. Traditionally, Israel and Lebanon remain in disagreement over demarcating border allocation of the separate economic zones. Israel claimed the boundary aligned towards the north at line 1, giving them the right to operate in the Karish Field. Lebanon, on the other hand, claims the border is aligned towards the South at line 23. In 2012, a US mediator came up with a midway proposal called half-line but it was not accepted by both parties. A decade later in 2022, Lebanon demanded the boundary be pushed southward at line 29. But, it remained contested.

The recent plan offered a compromise that both states will share the Qana Prospect while the Karish Field will remain in the Israel zone. The contested waters will be divided by a line straddling the ‘Qana’ natural gas field. Both parties would be able to produce gas on their side of the line, in addition to the royalty arrangements agreed upon. A buoy line will remain between the two countries. With this arrangement, both Israel and Lebanon will be able to unlock the potential oil and gas reserves in the Qana Field. With this, there is a discussion going on that the Eastern Mediterranean waters will come up as an alternate energy hub - supplying oil and gas to Europe that seeks to replace Russian gas.

But here the question arises: is this the first time Israel-Lebanon entered an agreement? In 1949, the Lebanon-Israeli Armistice Agreement was one of a series of agreements concluded under the aegis of UN mediator Ralph Bunche. Under the current agreement, the US became the mediator. But there are threats associated with the deal in the form of Hezbollah’s presence. Israel is worried about Hezbollah - who can disrupt the plan. Despite several threats, what benefits both Israel and Lebanon will achieve?

If we consider Israel first - this deal can strengthen its security alone. With this Israel will be on peaceful terms somehow with Iran via Hezbollah. That will potentially lead towards peace and security in the region. But for Lebanon, it is beyond peace and security. The deal will bring along economic prosperity. Currently, Lebanon is going through economic crises, heaps of corruption and some form of instability. An offshore energy discovery - while not enough on its own to resolve Lebanon’s deep economic problems - would be a major boon, providing badly needed hard currency. Lebanon is looking for foreign loans through the IMF and assistance to deal with its financial crisis. If Qana Prospects reserves are unlocked it will bring Lebanon riches in its waters to ease its economic hardships. Probably, that is the main reason Hezbollah leader Hasan Nasrallah stated that it is not time to bank on our political gains but concentrate on the points of our strengths. He further called the deal “a very big victory for Lebanon.”

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