Egypt is scrambling to secure emergency fuel supplies after intensifying conflict between Israel and Iran disrupted natural gas flows, raising fears of nationwide blackouts.

According to sources familiar with the situation, the Egyptian government plans to issue a new tender this month to import up to one million tons of fuel oil, with deliveries expected to begin in August.

The move follows a recent tender and is aimed at reinforcing the country’s reserves for power generation as regional instability deepens.

Bloomberg reported that Israel’s military strikes on Iran have intensified for the third consecutive day, with targets including military, nuclear, and energy infrastructure in Tehran, Natanz, and Isfahan.

In response, Iran launched over 200 ballistic missiles and drones at Israel in an operation it has named “True Promise III,” significantly escalating the conflict.

On Friday, Israel shut down two of its gas facilities, including its largest, Leviathan, citing heightened security risks following the attacks.

This shutdown has severely impacted gas exports to Egypt, which relies heavily on Israeli gas to meet domestic energy demands.

“We are working hard to keep our promise to avoid any blackouts, but of course what happened yesterday has its direct consequences on a large part of gas supplies needed for power stations,” Egypt’s Prime Minister Mostafa Madbouly said.

To manage the shortfall, authorities have already reduced gas supplies to several energy-intensive industries, prioritising electricity production to keep homes and public infrastructure running.

However, officials warn that a prolonged disruption in Israeli gas deliveries could strain Egypt’s power grid and heighten the risk of blackouts.

President Abdel-Fattah El-Sisi’s administration is determined to avoid a repeat of past summers marked by severe electricity shortages that triggered public anger in a country already grappling with high inflation.

In addition to restricting gas use, the government on Saturday halted diesel and fuel oil deliveries to certain industrial sectors for a period of two weeks.

One source noted that Egypt is currently facing a daily gas shortfall of around 3.5 billion cubic meters. Israeli gas had been covering between 800 million and one billion cubic meters per day before the shutdown.

The energy crisis comes as Egypt’s financial markets take a hit. On Friday, the EGX 30, the country’s benchmark stock index, recorded its worst single-day performance in five years, plunging by as much as 7.7% following the outbreak of violence.

All 31 companies listed on the index saw losses, and the Egyptian pound weakened sharply, trading as low as 50.6 to the US dollar, based on quotes from local banks.

Don’t Miss This: African Startup Funding Hits $254 Million in May, Led by Egypt’s Investment Boom