President Donald Trump said Tuesday that he has made a deal with Israeli Prime Minister Benjamin Netanyahu for the U.S. to stop sending $4 billion in aid annually to Israel, without providing details.
Oil prices slid in response to Trump’s comments.
“Bibi Netanyahu and I have made a deal that we give Israel $4 billion a year, and we made a deal months ago that we’re stopping,” he said in a phone interview with “Fox and Friends,” saying the money would get “cut off at the end of the year.”
The issue of U.S. aid to Israel, and Israel’s war in Gaza, has been one of the most contentious issues leading up to the midterm elections.
On stopping aid, Trump said Israel was “fine with it because, you know, they have become a very successful country, adding “we won’t be paying any more Israel,” calling it “a wasted thing.”
As spokesman for Netanyahu said he didn’t know anything about Trump’s comment but would check for details.
It was not immediately clear which exact funding Trump meant. A memorandum of understanding that provides $3.8 billion annual U.S. military aid to Israel is approaching its expiration date in 2028 and conversations have been under way on how Washington’s assistance to Israel would evolve beyond that date.
Brent crude oil fell by more than 3% to around $101 per barrel, its lowest level in more than three weeks, as investors and traders viewed the comments as potentially further evidence that the Iran war could be ended without escalation.
The drop added to oil’s biggest one-day decline in three months on Monday, after Trump told NBC News that he was not planning to attack Iran after the midterms.
This is a breaking news story. Please check back for updates.
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