Israel has accused Egypt of violating the 1979 Camp David peace accord by terminating the gas deal.

Egypt supplies 40 percent of the fuel Israel uses to meet its electricity needs. The Sinai pipeline was blown up at least 14 times in recent months. While Egypt claims it has terminated the contract due to non-payment, Israel has called it a political decision carrying serious implications.

The gas deal worth $2.5 billion was signed in 2005 and was to run 15 years.

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The US warned Israel of increasing isolation in the Middle East. The US Defense Secretary Leon Panetta in his visit to the Middle East said that negotiations between Tel Aviv and Ramallah must restart. The defense secretary also urged Israeli leaders to work towards restoring diplomatic relations with Egypt and Turkey. Real security can only be achieved by both a strong diplomatic effort as well as a strong effort to project your military strength,” said Panetta.

Analysis

Analysts have taken the US to be unhappy with Israel’s passivity in the midst of changing political climate in the Middle East. Washington which hoped the Arab Spring would bring democracy into the region, found the emergence of even more hostile regimes. Furthermore, the inclusion of Islamic parties into main stream politics has created a dangerous situation for Israel which seems unable to make diplomacy work in the midst of anti Israeli furor.

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Turkey’s Prime Minister, Tayyip Erdogan announced his country’s support for the Palestinian bid for statehood calling it “not an option but an obligation.” In an address in Cairo, Erdogan criticized Israel for acting irresponsibly and called for change of government in Syria. Erdogan was met with cheers as left the headquarters of the Arab League. He has garnered much support with Arabs, especially for his tough line on Israel.

The Turkish head of state is touring Arab countries in effort to maximize regional influence, and to sell Turkey’s brand of Islam and democracy to the various nations undergoing radical transformation in the Middle East.

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Israeli intelligence source reveal the mob that caused the break in to the Israeli Embassy in Egypt on Friday, was led by Jama’a al-Islamiya, the Egyptian founding branch of Al Qaeda, Additionally, two other extremist Egyptian Islamist groups were also involved. As a result of this attack, the Israeli Ambassador and the embassy staff had to be evacuated from Egypt.

Prime Minister Netanyahu announced on Saturday that despite that attack, Israel would continue to uphold the peace treaty with Egypt but it must safeguard its security. Since the fall of Mubarak, lsrael is closely monitoring the events of Egypt and to interpret what the change there means for the country.

Emotions are running high through out Middle East as a result of the Arab Spring. There is a great deal of worry in Israel that an extremist group or a rogue leader may try to turn the rage on the Arab street towards Israel. Furthermore, Israel’s trade and military relations with Turkey have also recently been suspended. The tensions are running high between the two countries, as Israel refused to apologize for the peace Flotilla incident in which a number of Turkish citizens were also killed.

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Dmitry Medvedev has described some Syrian anti government protestors as “terrorists”. In an interview with a news channel on Thursday, the Russian President said that “Those who are chanting anti-government slogans are very diverse people. Some are clearly extremists; some could even be described as terrorists.” Medvedev admitted the Syrain authorities are guilty of excessive force against protestors, but emphasized the opposition should also be pressurized to refrain from violence.

The West has proposed tough economic sanctions on Syria to force Bashar al-Assad’s to step down. These moves have so far been blocked in the UN Security Council by Moscow.

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Turkey’s Prime Minister Recep Tayyip Edrogan announced on Thursday that Turkey naval forces would escort the country’s humanitarian aid ships bound for Gaza. Erdogan told reporters “Turkish warships will be tasked with protecting the Turkish boats bringing humanitarian aid to the Gaza Strip.” The announcement came in light of the row between Ankara and Tel Aviv over Israel’s refusal to apologize for a raid on a flotilla. In May 2010, Israeli commandos boarded the ship Mayi Marmara killing nine Turks, and sparking an international row between the two countries.

Israeli officials have terms the remarks serious, but do not plan to retaliate to the verbal attacks.

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Cyprus’s new foreign minister, Erato Kozakou-Marcoullis made a two-day visit to Israel to discuss the issue of the gas fields that lie under the eastern Mediterranean. Cyprus has recently signed a maritime exploration with Israel, and the two countries are looking to cooperate further on the issue of gas. It is estimated that nearly 122 trillion cubic feet of gas and around 4 billion barrels of oil lie in the region, running south from Syria and Lebanon.

The dialogue on the matter has raised tensions with Turkey which invaded Cyprus in 1974 and seized the northern area. Turkey rejects the right of Nicosia’s governments move to exploit the islands resources.

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Turkey has downgraded its diplomatic relations with Israel while suspending all military agreements, as the country failed to apologize over the peace Flotilla incident last year.

“Diplomatic relations with Israel have been reduced to a second-secretary level. All personnel above the second-secretary level, primarily the ambassador, will return to their countries by Wednesday at the latest,” Foreign Minister Ahmet Davutoğlu stated at a press conference held on Friday.

“Our aim is not to harm the historical Turkish-Jewish friendship, but on the contrary, to urge the Israeli government to correct their mistake that does not befit this exceptional friendship,” Davutoğlu added.

The Turkey and Israeli ties are worsening at a time when Israel is feeling increasing vulnerable due to the change brought about by the Arab Spring in Middle East and the advancing Iranian nuclear program.

Additionally, China announced last Thursday that it would support Palestine’s United Nations Statehood bid in September. The announcement came during a meeting between Chinese special envoy to the Middle East, Wu Sike and Palestinian leaders in Ramallah. The announcement follows similar remarks by the Spanish Ministry of Foreign Affairs, which also expressed support for an independent Palestinian state.

Palestine’s attempts at gaining full membership in the UN is opposed by Israel which demands the Palestinian Authorities to first agree to a negotiated peace agreement.

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Turkey’s top military brass resigned from their posts late Friday amid an intensifying row with the government over the increasing number of detained generals. The joint resignations, which have happened for the first time in the country’s history, caused an immediate state crisis. Chief of the General Staff Isik Kosaner, Air Forces Chief Gen. Hassan Aksay, Naval Forces Commander Adm. Esref Ugur Yigit and Army Commander Erdal Ceylanoglu stepped down days before the YAS, or Supreme Military Council, was due to hold a meeting to discuss top military positions. According to sources, disputes between the two sides rose to an intolerable level after the legal action against Aegean Army Commander Hüseyin Nusret Tasdeler. Analysts have interpreted the development to indicate the strengthening of political forces in Turkey.

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Turkish authorities are working hard to try and fulfill Prime Minister Tayyip Erdogan’s desire to visit Gaza next week (July 24-25) as a sign of defiance for Israel and the US, intelligence sources have revealed. Two obstacles stand in his way though: fear of a murder attempt by Al-Qaeda linked groups in Sinai and the Gaza Strip; and strong objections from PA chairman Mahmoud Abbas, who sees the trip as de facto Egyptian and Turkish recognition of the Hamas movement. According to sources in Washington, the Obama administration hasn’t yet decided how to respond to Erdogan’s gesture.

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