Israel announces sea deal with Lebanon

Jerusalem: Israel's prime minister said Tuesday that the country has reached a historic agreement with neighbouring Lebanon over their shared maritime border after months of U.S.-brokered negotiations. The agreement would mark a major breakthrough in relations with the two countries, which formally have been at war since Israel's establishment in 1948.

But the deal still faces some obstacles, including key legal and political challenges in Israel. There was no immediate confirmation by Lebanon that a deal had been reached.

At stake are rights over exploiting undersea natural gas reserves in areas of the eastern Mediterranean that the two countries which do not have diplomatic relations claim. Premier Yair Lapid called the deal an historic achievement that will strengthen Israel's security, inject billions into Israel's economy, and ensure the stability of our northern border. The agreement is expected to enable additional natural gas production in the Mediterranean.

Lebanon hopes gas exploration will help lift its country out of its spiralling economic crisis.

Lebanon and Israel both claim some 860 square kilometers of the Mediterranean Sea. Under the agreement, those waters would be divided along a line straddling a strategic natural gas field.

According to a senior Israeli official, Lebanon would be allowed to produce gas from that field, called Qana, but pay royalties to Israel for any gas produced from the Israeli side.