Overview

• BP and the United Arab Emirates' state oil company, Adnoc, have put on hold their plans to acquire a 50% stake in Israel's NewMed Energy, citing the ongoing war in Gaza as the reason for the suspension.
• The $2 billion deal was seen as a significant step in strengthening financial ties between Israel and the UAE following the normalization of diplomatic relations in 2020.
• Shares of NewMed Energy dropped as much as 8% in Tel Aviv following the announcement of the suspension.
• Despite the current pause, both BP and Adnoc have expressed continued interest in the transaction, though there is no certainty on when or if discussions will resume.
• The war in Gaza has not only strained diplomatic relations but also affected companies doing business in the Middle East, with several Western brands facing boycotts in the region.