Unpacking Israel and Lebanon’s historic maritime border deal

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• John Yang:

  This week, two countries technically at war took a rare small step toward easing tensions. We'll take a closer look now at the historic maritime border agreement between Israel and Lebanon.

  On the open sea where borders aren't always clear and are often contested, this week, Lebanon and Israel, two nations technically at war for decades signed a breakthrough agreement brokered by the United States. President Biden called it historic.

• Joe Biden, U.S. President:

  It took some real guts and I think it took principle and persistent diplomacy to get it done.

• John Yang:

  The countries agreed on how to divide a critical stretch of the Mediterranean Sea rich and fossil fuels. For Lebanon, it could be an economic lifeline, its currency is nearly worthless, poverty and hunger are pervasive. And joblessness is at record levels.

  Amos Hochstein, Special Presidential Coordinator for International Energy Affairs: I truly believe and hope that this can be an economic turning point in Lebanon for a new era of investments.

• John Yang:

  That issue a 300 square mile section of sea that is home to two major gas fields. The two nations agreed on a permanent border that would allow both to get royalties from any energy exploration in the offshore gas field that straddles the boundary. But even as the deal was signed factions within Israel's Parliament called it illegal, and on land, tensions remain. Hassan Nasrallah leads Hezbollah whose political wing controls a majority in the Lebanese parliament.

• Sayyed Hassan Nasrallah, Hezbollah Leader (through translator):

  Results are a very big victory for Lebanon to the state, the people and the resistance. The state and those responsible in the Lebanese Government. We're very careful not to take any small step that may hint to normalization.

• John Yang:

  Israeli officials acknowledge it's an incremental and pragmatic step.

• Yair Lapid, Israel Prime Minister (through translator):

  This agreement strengthens Israel's security and our freedom of action against Hezbollah, and threats to our north. There is rare consensus in the security establishment regarding the necessity of this agreement.

• John Yang:

  As questions remain in this small degree of peace will extend beyond the sea. To unpack this historic deal, I spoke with two reporters about what it means in their home countries. Neri Zilber is a journalist based in Tel Aviv. I asked him how Israel stands to benefit from this deal.

  Neri Zilber, Journalist & Analyst: Well, there are a few benefits. First and foremost, it's a diplomatic agreement with an enemy state. So, when the Israeli Prime Minister Yair Lapid, gets up and says it's a historic deal. It's true. It's true in that sense, that Israel and Lebanon are still officially at war. But primarily it provides Israel certain percentage of the potential future Lebanese natural gas field around 17%. And also, primarily provides Israel security for its own gas field nearby. So that went online just a few days ago. And despite Hezbollah threats, that it would torpedo that drilling, the drilling has gone on uninterrupted. And that's also a benefit for Israel.

• John Yang:

  This is a historic deal, because it's two states that are technically at war. Could this be the beginning of something new?

• Neri Zilber:

  I believe it's a sign of pragmatism and prudence in a part of the world that, that those traits are oftentimes quite rare. But even Israeli officials are very sober about the broader implications of this agreement. It's a technical agreement, it's not likely that Israel Lebanon will use this as a springboard for future peace talks, especially so long as the Hezbollah militant group, which is obviously beholden to Iran wield veto power over Lebanese politics, and over Lebanese security affairs.

• John Yang:

  You also say this sort of removes a threat or a point of tension between Israel and Hezbollah. But does it erase those tensions? Does it put it off permanently?

• Neri Zilber:

  No, I don't believe so. Hezbollah is still very, very much opposed to Israel, and Israel's existence, maintains a vast arsenal of missiles and rockets pointed at Israel and Israeli cities. So yes, it's a sign of pragmatism and prudence especially since Hezbollah gave it a sense to disagreement. But no, there are still proper territorial and border disputes. There's still issues of holy sites inside Israel in Jerusalem and the West Bank. So those will remain in place, unfortunately.

• John Yang:

  Israel and Lebanon have no diplomatic relations. They couldn't talk directly. They had to talk through the United States. Why do you think the United States was so interested in brokering this deal?

• Neri Zilber:

  Well, I think first and foremost, it wanted to avoid any potential military escalation in the Middle East and especially relating to Israel. Obviously, the close relationship between Israel and the U.S. is quite important, especially for the Biden administration. And also, it was a sign for the Biden envoy, focusing that he could get the deal done where, perhaps, previous administration had failed. And writ large, I think for Biden's foreign policy, it's a way to emphasize for the world but especially middle eastern states, that the U.S. is still involved. For the U.S. it was a foreign policy victory for the Biden administration and a foreign policy victory in the Middle East, which as we know, over the past few decades has been few and far between.

• John Yang:

  Neri Zilber journalist and analyst based in Tel Aviv, thank you very much.

• Neri Zilber:

  My pleasure, John.

• John Yang:

  And now for the perspective from Lebanon, we're joined by Maya Gebeily, the Beirut based Reuters Bureau Chief for Lebanon, Syria and Jordan. Maya, thanks for joining us. You just came from interviewing outgoing Lebanese President Michel Aoun. What's he — how is he talking about this deal?

  Maya Gebeily, Reuters Bureau Chief Lebanon, Syria & Jordan: Well, this for outgoing president, this is his crowning achievement of the six years that he has spent in office. And today when we spoke to him, he reiterated that it was the product of indirect negotiations. And it was not a peace deal with Israel. He didn't say for the domestic Lebanese audience as well that this is Lebanon's last chance for economic recovery. So definitely the Lebanese are hoping for a financial windfall from the kind of the aftermath of year. And he reiterated as well a really important role, as he saw that Hezbollah has played in making sure that this this deal actually came into force.

• John Yang:

  How significant is that?

• Maya Gebeily:

  I think on a political level, it is quite significant to see Hezbollah give a green light to this understanding, as they call it, but Lebanese officials have been adamant that the two countries remain in a state of war. And this is not a peace deal.

• John Yang:

  It just remove a flashpoint between Lebanon and especially Hezbollah and Israel, but the tensions remain, am I right?

• Maya Gebeily:

  Certainly, certainly. And it has been interesting to see outgoing President Michel Aoun as well describe this deal as a way to ensure that tensions don't flare up into full scale war. I mean, he's he said multiple times, including this this morning, but when we spoke to him, that now you've got shared interests, if something happens, on either side to mess up that deal or to lead to any kind of security incident that both sides would lose.

• John Yang:

  Is disagreement sort of top of mind for Lebanese or is this something a lot of people are aware of? What's been the reaction?

• Maya Gebeily:

  I think it's certainly something that people are aware of, but like anything in Lebanon, people are split over how to react, you've got a lot of celebrations among, of course, and people who are supporters of President Aoun. You've also gotten a more measured response from people who are looking at it from a technical perspective, where they're saying, actually, any exploration is going to take 12 to 18 months before we really know what is actually in these maritime blocks. So, let's hold our horses here. Let's not be too celebratory at this stage, because we're not sure when we're actually going to see any kind of financial reward from this deal.

• John Yang:

  Give us a sense of what the economic problems are in Lebanon right now?

• Maya Gebeily:

  They are manifested. I mean, it's been three years since Lebanon entered its financial downfall. And over the last three years, you've seen the Lebanese pound lose over 95% of its value. You've seen more than 80% of Lebanon's population, go under the poverty line. And you've got families who are spending a vast majority of their day without electricity at home. Schools open and close because they don't have enough funds. And at this point, there really is no end in sight. You know, everyone's kind of asking when do we hit rock bottom? Is there a rock bottom?

• John Yang:

  Maya Gebeily, the Reuters Bureau Chief for Lebanon, Syria and Jordan, thank you very much.

• Maya Gebeily:

  Thank you, John.