The energy sector is one indicator of the heavy costs the region will pay in the event of a wider conflict, with some effects already measurable in certain countries. Basically, If the war expands, the hydrocarbon sector will not be spared the economic ramifications, and the energy plans of regional governments will be postponed for years to come.

The war has already had global impact in less than a month since Hamas penetrates across Israel’s security wall in more than 20 places. The longer the war in Gaza plays out, the greater the potential for wider consequences well beyond the Israeli or Palestinian borders. There may be a lot more than five.

The global dangers are economic disruption, growing military vulnerabilities, deeper political polarization, new strategic challenges, and the shifting nature of warfare due to belligerent non-state actors.

Reuters: Israeli gas exports to Egypt resume but in small quantities
Israeli natural gas exports to Egypt have resumed after a disruption last weekend but in small volumes, an official in Egypt’s petroleum ministry said on Thursday, without specifying the current flow.
Three people with knowledge of the matter also told Reuters on Tuesday the flow had resumed, with two saying it had only been reduced, not halted.
The disruption in exports follows Israel’s suspension of production at Chevron’s Tamar gas field on Oct. 9, shortly after fighting escalated with the Islamist group Hamas in Gaza. In parallel, supplies were also redirected through a pipeline in Jordan, rather than a direct subsea pipeline to Egypt.
Egypt’s cabinet said in a statement last Sunday that gas imports fell to zero from 800 million cubic feet per day (mcfd), contributing to a deficit of power generation that has caused months of power cuts.
An official in the Leviathan project, however, said on Tuesday that “exports to Egypt are ongoing continuously, which shows the project’s commitment to its customers and the Egyptian market. Gas production at Leviathan has continued throughout this period.”

Egypt Can Export LNG Without Israeli Gas: Eni CEO
Italy’s Eni could resume LNG exports from its liquefaction terminal in Egypt next month despite uncertainty over the availability of gas flows between Israel and Egypt.