Lebanon and Cyprus have signed a long-awaited maritime demarcation agreement, marking a significant step toward potential offshore gas exploration and enhanced energy cooperation in the Mediterranean. The deal was formalized at Lebanon's presidential palace, with leaders from both countries expressing optimism about future collaboration and economic opportunities. This agreement resolves an issue that had been pending for years, following a preliminary deal in 2007 and recent cabinet endorsements. Lebanon, still recovering from a severe financial crisis and ongoing power shortages, hopes that offshore energy discoveries will help generate much-needed state revenues. While no commercially viable gas or oil finds have been made in Lebanon's offshore blocks yet, the agreement is seen as a crucial move toward economic recovery and regional partnership.