In the early 2003, American troops toppled the regime of Saddam Hussein in Iraq. Few weeks later, President Bush introduced his vision to solve the Arab-Israeli conflict in what is known as the "road map". These interrelated developments confirm the connection between the two Middle-Eastern sub-systems-the Persian Gulf and the Levant and provide an opportunity to achieve a comprehensive peace. Regional economic cooperation is seen as the sine qua non of a durable peace. This study examines the potential for an energy partnership between the Persian Gulf hydrocarbon producers and Israel. (C) 2003 Elsevier Ltd. All rights reserved.