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Israel’s prime minister said Tuesday that the country has reached a "historic agreement" with neighboring Lebanon over their shared maritime border after months of U.S.-brokered negotiations.

The agreement, coming after several years of U.S.-mediated talks, would mark a major breakthrough in relations with the two countries, which formally have been at war since Israel's establishment in 1948. But the deal still faces some obstacles, including key legal and political challenges in Israel. There was no immediate confirmation by Lebanon that a deal had been reached.

At stake are rights over exploiting undersea natural gas reserves in areas of the eastern Mediterranean that the two countries — which do not have diplomatic relations — claim.

Premier Yair Lapid called the deal an "historic achievement that will strengthen Israel’s security, inject billions into Israel’s economy, and ensure the stability of our northern border." 

najib makati elias bou saab prime minister

In this photo released by Lebanon's official government photographer Dalati Nohra, Lebanese Prime Minister Najib Makati, right, receives the final draft of the maritime border agreement between Lebanon and Israel from his deputy Elias Bou Saab who leads the Lebanese negotiating team, in Beirut, Lebanon, Tuesday, Oct. 11, 2022. (Dalati Nohra via AP)

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The agreement is expected to enable additional natural gas production in the Mediterranean. Lebanon hopes gas exploration will help lift its country out of its spiraling economic crisis.

Lebanon and Israel both claim some 860 square kilometers (330 square miles) of the Mediterranean Sea. Under the agreement, those waters would be divided along a line straddling a strategic natural gas field.

According to a senior Israeli official, Lebanon would be allowed to produce gas from that field, called "Qana," but pay royalties to Israel for any gas produced from the Israeli side. Lebanon has been working with the French energy giant Total on preparations for exploring the field.

The agreement would also leave in place an existing "buoy line" that serves as a de facto border between the two countries, the official said. He spoke on condition of anonymity because he was discussing behind-the-scenes negotiations.

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Many leading security figures, both active and retired, have hailed the deal because it could lower tensions with Lebanon's Hezbollah militant group, which has repeatedly threatened to strike Israeli natural gas assets in the Mediterranean.

With Lebanon now having a stake in the region's natural gas industry, experts believe the sides will think twice before opening up another war.

The two sides fought a monthlong war in 2006, and Israel considers the heavily armed Hezbollah to be its most immediate military threat.

"It might help create and strengthen the mutual deterrence between Israel and Hezbollah," said Yoel Guzansky, a senior fellow at Israel's Institute for National Security Studies. "This is a very positive thing for Israel."

The final draft of the agreement will be brought before Israel’s caretaker government for approval this week ahead of the Nov. 1 election, when the country goes to the polls for the fifth time in under four years.

israel michel aoun elias bou saab prime minister

In this photo released by Lebanon's official government photographer Dalati Nohra, Lebanese President Michel Aoun, left, receives the final draft of the maritime border agreement between Lebanon and Israel from the deputy of Lebanese prime minister Elias Bou Saab and who leads the Lebanese negotiations, in Beirut, Lebanon, Tuesday, Oct. 11, 2022. (Dalati Nohra via AP)

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An Israeli official said the deal would go before Israel’s Security Cabinet and then the full Cabinet on Wednesday and be presented to Parliament for a 14-day review. After the review, the Cabinet would reconvene to give final, formal approval, the official said, speaking on condition of anonymity to discuss government policy.

The process will take place less than three weeks before Israel goes to the polls Nov. 1 for the fifth time in under four years.

Approval is not guaranteed. Former Prime Minister Benjamin Netanyahu, has said the caretaker government has no authority to sign such an important agreement and has vowed to cancel the deal if re-elected. On Tuesday, he accused Lapid of caving in to Hezbollah threats.

"This is not a historic agreement. It's a historic surrender," Netanyahu said in a Facebook video.

The Kohelet Policy Forum, an influential conservative think tank, already has filed a challenge to the Supreme Court trying to block the deal.

prime minister israel minister yair lapid

FILE - Israeli Prime Minister Yair Lapid makes an opening statement as he chairs the weekly cabinet meeting in Jerusalem, Oct. 2, 2022. (Dalati Nohra via AP)

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Eugene Kontorovich, the forum's director of international law, claimed the agreement requires parliamentary approval. He accused the government of trying to rush through an agreement under pressure from Hezbollah. "This means Hezbollah now overrides Israel's democracy," he said.

But Yuval Shany, an expert on international law at the Israel Democracy Institute, another prominent think tank, said it is customary, but not mandatory, to seek Knesset approval for such agreements.

"Peace agreements are usually brought to the Knesset, but this is not a peace agreement. It's a border and limitation agreement," he said.

Senior U.S. energy envoy Amos Hochstein, whom Washington appointed a year ago to mediate talks, delivered a modified proposal of the maritime border deal to lead Lebanese negotiator, Deputy Speaker Elias Bou Saab late Monday night, according to local media and officials.

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President Michel Aoun’s office said the latest version of the proposal "satisfies Lebanon, meets its demands, and preserves its rights to its natural resources," and will hold consultations with officials before making an announcement. 

Hezbollah did not immediately comment, but its leader, Hassan Nasrallah, has said that the group would endorse the Lebanese government’s position. In the past, however, he has threatened to use its weapons to protect Lebanon’s economic rights.

Nasrallah was expected to make an official statement later Tuesday.