The following research will focus on examining the Political Economy of Energy in Eastern Mediterranean. We define Eastern Mediterranean countries as Cyprus, Egypt, Greece, Israel, Jordan, Lebanon, Syria, Turkey, and Palestinian Territories (West Bank and Gaza). Eastern Mediterranean is becoming one of the most important regions for analysis in the field of International Relations. The recent discoveries of hydrocarbons in Levant Basin, are expected to change the energy equilibrium of the surrounding area and play an important role in both energy supply and energy security. Based on the principles of International Political Economy and Macroeconomic Theory, the analysis will be focused on the correlation of economic development with the energy sector, the geopolitical factors and the stability regarding the states relations. Furthermore, this research is going to examine the prospects of the upcoming energy projects in Eastern Mediterranean as well as their viability and their effects on the geopolitical image of the area.