Turkish President Recep Tayyip Erdogan and Israeli Prime Minister Benjamin Netanyahu are reportedly planning to meet next month to improve the strained relations between their countries. The two nations were once close military allies but saw their ties deteriorate after a 2010 Israeli raid on a Turkish flotilla headed to the Gaza Strip. The only full diplomatic relations were restored in August 2020, after over a decade of tensions.
The disruption of supply chains and commodity markets caused by Russia’s invasion of Ukraine is reportedly providing a fresh incentive to mend ties between Turkey and Israel. In addition, both nations are concerned about Iran’s activities in the region, with Turkey wary of the Islamic Republic's growing influence in Syria and the Israeli government concerned about Iran's support of groups hostile to Israel, including Hezbollah in neighboring Lebanon.
Both nations have also expressed interest in improving ties with other Middle Eastern states. Israel established diplomatic relations with the United Arab Emirates and Morocco in 2020 and is seeking to establish ties with Saudi Arabia. Meanwhile, Turkey and Saudi Arabia have also patched up ties.
The two leaders could meet in Ankara in July, according to sources who spoke anonymously due to the confidentiality of the matter. However, they caution that both Erdogan and Netanyahu are under domestic pressure. Erdogan recently revamped his economic team to address a cost-of-living crisis, while Netanyahu has faced mass protests over attempts to weaken the power of the judiciary.
Talks between the two leaders may also include the potential export of liquefied natural gas from a field off the Gaza Strip to Europe via Turkey. However, it's unclear how much gas is available, and distributing it remains years away since there are no LNG export terminals or gas pipelines running from Israel to Turkey.
Despite the efforts to mend ties, Turkey and Israel are still divided over the status of Palestinian territories. Israel also accuses Turkey of supporting Hamas, the Islamic militant group running the Gaza Strip. However, a gas agreement between the two nations may help to heal the rift. Netanyahu's office has announced that Israel would allow the development of a field off Gaza as part of efforts to bolster the ailing Palestinian economy and maintain regional calm.
Bilateral trade between Turkey and Israel has been increasing, and tourism is booming as cruise lines resume trips and Israeli companies start direct flights to Turkish resorts such as Antalya and Bodrum. Last year, Turkey's exports to Israel increased 11% to $7 billion, while imports were around $2.5 billion, according to official Turkish government data. Israeli companies are also seeking to do more business with Turkey, partly because higher shipping costs are making supplies from China more expensive. Isreal mainly imports steel, iron, and other construction materials from Turkey.