By Ahmed Abdelsalam
President Donald Trump said Tuesday he has reached a deal with Israeli Prime Minister Benjamin Netanyahu to halt $4 billion in annual U.S. aid to Israel, with the funding cut off at the end of the year.
Deal details and political context
Trump disclosed the agreement during a phone interview with "Fox and Friends" while voters were casting ballots in the midterm elections. He said the idea originated from Netanyahu, who reportedly told him it would be appropriate to forgo the aid because it had become a political target for critics on the left.
Market reaction
Oil prices fell sharply after the remarks, with Brent crude dropping more than 3% to about $101 a barrel, its lowest level in over three weeks. Traders interpreted the comments as a sign that the U.S.-Iran conflict might de-escalate.
Israeli response and uncertainty
A spokesman for Netanyahu said he was unaware of Trump's comments and would seek clarification. It remains unclear which specific funding stream Trump referenced, though a memorandum of understanding providing $3.8 billion in annual military aid expires in 2028.
Background on U.S. aid
Since the Hamas-led attack on Oct. 7, 2023, and the subsequent Israeli offensive in Gaza, the United States has supplied $21.7 billion in military assistance to Israel, according to research by William D. Hartung of the Quincy Institute.
Domestic criticism
Yair Golan, leader of the left-wing Democrats party in Israel, warned that ending American aid would severely damage Israel's security and quality of life, especially as defense spending surges and weapons stocks need replenishment.
