Israel and Lebanon are expected to sign a U.S.-brokered maritime border agreement on Thursday, Prime Minister Yair Lapid said Monday.

The deal marks a significant compromise between neighbors with a history of war and hostility, opening the way for offshore energy exploration and easing a source of tensions.

"On Thursday, we are going to sign an historic agreement with Lebanon," the Israeli premier told his visiting Dutch counterpart Mark Rutte of the U.S.-brokered deal.

Longtime foes Lebanon and Israel started indirect negotiations through U.S. mediation in 2020 at a United Nations peacekeeping base in Lebanon's Naqoura, but the talks have stalled several times.

The maritime border dispute has held up exploration in the potentially gas-rich area.