Israel launches siege of Gaza, declares operation only just begun: As Israel battles the last remaining pockets of Palestinian fighters in southern Israel and mounts a siege of Gaza, regional leaders are scrambling to de-escalate the situation and Egypt faces a fresh energy squeeze.

ENERGY DISRUPTION-

Chevron halts Tamar product ion, hitting Egypt’s gas imports: Egypt’s imports of Israeli gas fell almost 20% yesterday after Israel suspended production at the Tamar field, Asharq Business reports, citing a government official. The closure of the field meant that Israel’s gas shipments to Egypt slumped to 650 mn cubic feet per day from 800 mn cf/d. The Israeli energy ministry yesterday told field operator Chevron to halt production due to the security situation. Israel’s other major gas field, Leviathan, remains online.

It’s temporary: “Israel informed Egypt of the cessation the day before yesterday and stressed that stopping work in the Tamar field is only a temporary cessation,” Asharq quotes the official as saying.

Israel has been a key energy partner during a difficult summer: Egypt has been importing increased volumes of Israeli gas this year, helping to offset the ongoing electricity crisis that has triggered nationwide rolling blackouts for over two months.

This could keep our LNG terminals offline: Uncertainty about the supply of Israeli gas could potentially delay the Oil Ministry’s plans to resume gas exports this month. Egypt has exported next to no gas during the summer due to the power crisis, which was caused by falling domestic gas production and surging consumption.

GAZA UNDER SIEGE AS DEATH TOLL CLIMBS-

UN warns of humanitarian crisis as Gaza is sealed off: UN secretary general, António Guterres yesterday expressed “deep distress” at the conditions in Gaza, and warned that the humanitarian situation will “deteriorate exponentially.” Israel’s Defense Minister Yoav Gallant yesterday ordered a “complete siege” of Gaza, cutting off all electricity, food and fuel to more than 2 mn people. “We are fighting human animals and we are acting accordingly,” he said. The country has drafted record numbers of reserve soldiers and intensified airstrikes, with Israeli Prime Minister Benjamin Netanyahu saying yesterday that the military operation has “only started” and declaring that the country is “going to change the Middle East.”

The death toll currently stands at more than 1.5k: Israeli authorities have so far reported 900 dead, while the Palestinian death toll from airstrikes has reached almost 700 according to Gaza’s health ministry.

We warned them, says Egyptian source: Egypt repeatedly warned Israel about “somethingbig” happening in Gaza, an unnamed intelligence official told the Associated Press. “We have warned them an explosion of the situation is coming, and very soon, and it would be big. But they underestimated such warnings,” they are quoted as saying.

Rafah crossing closes following airstrike: The Rafah crossing on the Sinai-Gaza border wasclosed after an Israeli air strike hit the gate, several international outlets reported yesterday, including Reuters and Al hur ra, which published a video from the Sinai Tribes account on X (watch, runtime: 0:20), reportedly showing the air strike.

Flights suspended: EgyptAir flights between Cairo and Tel Aviv were suspended yesterday,while flights between Sharm El Sheikh and the Israeli capital are still operating to return Israeli tourists, Reuters reports, citing unnamed Egyptian airport sources.

DIPLOMACY-

Egypt + Qatar appear to be leading the mediation outreach: The Wall Street Journal reported yesterday that Israel has asked Egypt to step in and help secure the release of the hostages, citing Egyptian officials. The newspaper said on Sunday that Cairo has reached out to both sides in an attempt to calm tensions. Meanwhile, Qatar’s foreign ministry confirmed to Reuters that it has begun mediation talks with Hamas and Israeli officials. The newswire had earlier reported the existence of talks, citing an anonymous source that described them as “moving positively.”

Though the Israelis are denying everything: Israeli officials have denied Qatar’s involvement, Reuters said, while Israeli officials yesterday ongoing talks with Egypt, wrote the Times of Israel.

El Sisi talks to regional leaders: President Abdel Fattah El Sisi spoke to Saudi Crown Prince Moha med b in Salman, Emirati President and ruler of Abu Dhabi Sheikh Moham ed bin Z ayed Al Nahyan, and Turkish President Rec ep Tayyip Erd ogan yesterday to coordinate responses to the conflict, Ittihadiya said. During his calls with MbS and Erdogan, El Sisi stressed the importance of reaching a settlement “based on the two-state solution.” The president also spoke with UN Secretary-General Anto nio Gu terres and his C ypr iot counterpart.

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