Israeli Prime Minister Benjamin Netanyahu said on Monday that his nation’s agreement with Turkey to normalise ties will have “immense” implications for the Israeli economy.The Israel—Turkey reconciliation deal, which is to be officially announced later in the day, is meant to end a bitter six-year rift between the Mideast powers. News of the deal first emerged on Sunday, and an Israeli official confirmed the details of the deal to The Associated Press. He spoke on condition of anonymity pending a formal announcement.

Speaking in Rome during talks with U.S. Secretary of State John Kerry in Rome, Mr. Netanyahu said on Monday the agreement is 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,” the Israeli Prime Minister said.

As Mr. Netanyahu and Mr. Kerry met for the second time in as many days, the U.S. top diplomat welcomed the agreement and congratulated Mr. Netanyahu. He said the U.S. 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 American 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 ties.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 neighbouring Syria.

An Israeli official said the impending deal would include $20 million in Israeli compensation for families of those killed in the raid, an end to all Turkish claims against Israeli military personnel and the state of Israel over 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 Mr. Abbas expressed his “satisfaction” over the deal.The officials spoke on condition of anonymity because they were not permitted to speak publicly about the matter.

Treasury chief George Osborne sought on Monday to ease investor concerns about Britain’s vote to leave the European Union, saying the U.K. economy is as strong as it could be to face the challenge.In his first public appearance since Thursday’s referendum, Mr. Osborne stressed that Britain’s economy is in a far better position than it was at the start of the 2008 financial crisis.

“It will not be plain sailing in the days ahead,” he said. “But let me be clear. You should not underestimate our resolve. We were prepared for the unexpected.”The Institute of Directors said on Monday that a survey of its 1,000 members showed that three out of four believe that Britain’s exit from the EU, or Brexit, will be bad for business.

The pound had plunged to its lowest level in 30 years on Friday and fell another 1.7 percent against the U.S. dollar on Monday, to $1.3430.Mr. Osborne pledged not to impose a new austerity budget even though he said during the campaign that one would be necessary if voters chose to leave the EU. He said another budget would be the task of the government of Prime Minister David Cameron’s successor.Mr. Osborne also said he had been working closely with Bank of England Governor Mark Carney, fellow finance ministers and international organizations over the weekend.

“We are prepared for whatever happens,” he said.

In another move to cushion market reaction, Mr. Osborne stressed that only Britain can invoke Article 50 of the EU constitution, which triggers the formal process by which the country would leave the bloc. The U.K. “should only do that when there is a clear view about what new arrangement we are seeking with our European neighbours,” he said.Mr. Cameron is expected to chair an emergency Cabinet meeting on Monday. U.S. Secretary of State John Kerry is visiting Brussels and London to address the fallout from the vote.

Political turmoil has roiled Britain since the vote as leaders of the government and opposition parties grapple with the question of how precisely the U.K. will separate from the other 27 nations in the bloc.Mr. Cameron, who led the campaign to remain in the EU, has announced he will step down by October.Opposition leader Jeremy Corbyn is also facing upheaval within his Labour Party, after about a dozen advisers quit his inner circle. They believe Mr. Corbyn’s lacklustre campaign in support of remaining in the EU fatally undermined his ability to lead.

The vote is also causing a political schism in the U.K. overall. Scotland’s First Minister Nicola Sturgeon said she would “consider” whether to advise the Scottish Parliament to use its power to try to prevent Britain from leaving the EU. Some 62 per cent of Scots voted to remain in the bloc.Scottish lawmakers might be able to derail Britain’s departure by withholding “legislative consent,” she said