Scoop: U.S. discussing potential Sisi-Netanyahu summit

• "This is a huge opportunity for Israel. Selling gas to Egypt will create interdependence, get the countries closer together, create a warmer peace and prevent war," a U.S. official told Axios.

The big picture: The U.S. is considering similar initiatives focused on economic incentives in areas like tech and energy between Israel and Arab countries such as Lebanon, Syria and Saudi Arabia.

• The goal is to bring Israel in from the cold diplomatically, establish a new model for Israel engaging with the Arab world and get the Abraham Accords back on track.
• U.S. officials hope to accomplish that in parallel with their work to stabilize the Gaza ceasefire and proceed with that peace process.

Behind the scenes: In recent conversations, President Trump's adviser and son-in-law Jared Kushner has told Netanyahu that after the war, Israel needs to show countries in the region it has more to offer than just a negative agenda, a U.S. official told Axios.

• Kushner emphasized that countries in the region don't want to talk about Iran all the time, but rather to explore business opportunities. If Israel wants to fit in the region, it needs to go back to speaking that language, Kushner said.
• "Jared told Bibi that Israel needs to develop economic diplomacy muscle and get the private sector involved in the peace process. He explained how when the Qataris, Saudis or Emiratis come to Washington they bring business delegations because they are focused on deals," the U.S. official said.
• The U.S. official contended that Israel should leverage its tech and AI sector, natural gas resources, and expertise in areas like renewable energy and water in its regional diplomacy.

Kushner proposed to Netanyahu that he start with Egypt, which was instrumental in delivering the Gaza peace deal and leading the effort that has so far brought back 27 of the 28 deceased hostages held in Gaza.

• "The Egyptians have really shown commitment to help in Gaza," a U.S. official said.
• While Netanyahu told Kushner he wants to meet Sisi, he hasn't seriously engaged, according to an Israeli source and a U.S. official. The Egyptian president has also been cool on the idea of a meeting.
• "There has been no significant strategic-level contacts between the countries for the last two years," the Israeli source said.

Flashback: Netanyahu previously backed out of an invitation, secured by Trump, to attend the October Gaza peace summit in Sharm el-Sheikh, Egypt.

• Netanyahu's reversal went over badly with Sisi, according to the Israeli source.
• Sisi and Netanyahu held a secret meeting in 2018, and last met publicly at the UN General Assembly in 2017.

Zoom in: U.S. officials have told Netanyahu he needs to have something to offer the Egyptians for such a summit to happen, the sources say.

• One possibility is to approve a multibillion-dollar natural gas deal under which Israel would provide an estimated 25% of Egypt's electricity supply. U.S. firm Chevron is a partner in the gas field at the center of the deal.
• Sisi approved the plan in July despite domestic and foreign criticism, but the Israeli government has yet to follow suit.
• The Israeli source said that was due to "Israeli domestic petty politics" and to Netanyahu's desire to sign the deal during a public meeting with Sisi in Egypt. The Israeli embassy in Washington declined to comment.
• U.S. officials have told Netanyahu he needs to approve the gas deal and prepare other economic proposals in order to make a meeting with Sisi happen.

What to watch: An Israeli source and a U.S. official said Netanyahu has recently established a team that is quietly preparing tangible economic deliverables for a potential summit with Sisi.

The bottom line: "What we told Bibi is that he needs to turn it into a warm peace and then work together to de-escalate things in the region. If it works with Egypt we can then do the same thing with Syria, Lebanon and Saudi Arabia," the U.S. official said.