Netanyahu lauds benefits of normalizing ties with Turkey

Israeli Prime Minister Benjamin Netanyahu said on Monday that his nation's agreement with Turkey to normalize relations will have "immense" implications for the Israeli economy.

The Israel-Turkey reconciliation deal was meant to end a bitter six-year rift between the Mideast powers.

Speaking in Rome after talks with US Secretary of State John Kerry, Netanyahu said on Monday the agreement was an important step, alluding to the development of Israel's offshore natural gas reserves.

"I use that word advisedly, immense implications for the Israeli economy, and I mean positive immense implications," he said.

As Netanyahu and Kerry met for the second time in as many days, the US top diplomat welcomed the agreement and congratulated Netanyahu. He said the US has been working on the rapprochement for several years, and called it a "positive step".

Israel and Turkey were former close allies, but relations imploded in 2010 following an Israeli naval raid that killed nine Turkish activists, including a dual US citizen, who were on a ship trying to breach Israel's blockade of the Gaza Strip.

Following the incident, Turkey withdrew its ambassador to Israel and greatly scaled back military and economy relations.

The move toward rapprochement comes amid Turkey's deepening isolation in the region, following a deterioration of ties with Russia and Egypt as well as the turmoil in neighboring Syria.

The deal also included $20 million in Israeli compensation for families of those killed in the raid and the mutual restoration of ambassadors.

A senior Turkish official said that under the agreement, Turkey would deliver aid to Gaza and engage in infrastructure investments to construct residential buildings and a hospital, and to address energy and water shortages in Gaza.

Turkish President Recep Tayyip Erdogan briefed Palestinian President Mahmoud Abbas about the deal, the official Palestinian news agency WAFA said on Monday. Officials from Erdogan's office said Abbas expressed his "satisfaction" over the deal.