Yorgos Karahalis | Reuters

The Turkish President Erdogan is more inclined to take a hard line on Cyprus to bolster his standing in Turkey as he faces many internal problems. Euthymius Petrou former advisor to the Greek Ministry of Defense and expert on Turkish affairs

Cyprus has been divided since 1974 when Turkey invaded the north. The island was effectively partitioned with the northern third inhabited by Turkish Cypriots and the southern two-thirds by Greek Cypriots. The UN has overseen a ceasefire line between the south and Turkish-held north of the island in the four decades since.

The country's latest push to attract interest in its energy sector comes as Turkey and Israel discuss a pipeline to import Israeli natural gas that would pass through Cypriot waters. Turkey's goal is to reduce its reliance on Russian energy supplies. Officials in Nicosia, the capital city in the Republic of Cyprus, have said they will block the pipeline if the island stays divided. According to experts, Turkey's desire for Israeli gas may be the impetus needed to finally broker a resolution. A Cyprus deal has drawn the personal interest of top U.S. and European diplomats including Vice President Joe Biden. It would be a high-profile win in Europe for the outgoing administration.

A reason for optimism

Although the Republic of Cyprus, which is a member of the EU, is recognized as the sole legitimate state, 36 percent of the island in the north is the self-declared Turkish Republic of Northern Cyprus. It is occupied by Turkish armed forces and recognized as a state only by Turkey. The reason for optimism is that the two leaders, the President of Cyprus Nicos Anastasiades and the Turkish Cypriot leader Mustafa Akinci, are committed to a settlement and have been discussing a reunification plan since May 2015. More from Global Investing Hot Spots:

At a tipping point: a currency crisis roils Turkey's economy

Turkey's economic struggles set to continue The current plan involves the establishment of two constituent states within an overarching federal framework on the island. The two states would run most of the island's affairs. Any deal would have to go to a referendum.

The drillship Pacific Khamsin in Limassol, Cyprus. Total explored for gas in their offshore Block 11 concession in early 2017. Athanasios Gioumpasis | Getty Images

According to experts the growing energy importance of Cyprus has offered a great incentive for reconciliation. The East Mediterranean island is located in the Levant basin, where both Israel and Egypt have made some of the world's biggest natural gas discoveries in the past decade. It's in this area that Cyprus found an estimated 4.5 trillion cubic feet of natural gas in one prospect in late 2011. Last year, the most pronounced interest was for an offshore sea block in close proximity to the Zohr field offshore Egypt, where Eni reported the discovery of an estimated 30 trillion cubic feet of natural gas in 2015. Over the last five years, the gas reserves in the waters around Cyprus have grabbed the attention of the international community, mainly from Europe and the United States. European Union countries that import natural gas, mostly from Russia, have been looking for alternative sources due to Russia's use of Gazprom, the natural gas company of Russia, as a weapon in the Ukrainian crisis. Not surprisingly, U.S. President Barack Obama recently argued that a just and comprehensive solution for Cyprus would have historic and far-reaching impact as it would improve economic opportunities for all the people of Cyprus and enhance energy security in the Mediterranean region and beyond.

Stumbling blocks remain