A United Arab Emirates official said Thursday the cancellation of an oil pipeline deal between Israeli and Emirati companies “will not harm” the ties between the two sides.

The Emirati official told Israeli daily Yedioth Ahronoth the possible cancelation 'won't harm the Abraham Accords, and the UAE sees this as only a commercial deal in the private sector,' referring to the deal of normalization that was reached last year.

The oil deal, involving Israeli-owned Europe-Asia Pipeline Company (EAPC) and an Israeli-Emirati company called MED-RED Land Bridge Ltd was signed in October 2020.

The agreement would have seen Gulf oil brought to the Red Sea port of Eilat by tanker, then moved by pipeline through the occupied territories to the Mediterranean port of Ashkelon, from where it would be shipped to Europe.