The US State Department has approved a $16.5 billion arms sale deal to the United Arab Emirates, Kuwait, and Jordan, as tensions with Iran continue to intensify. According to a statement from the department, $8.4 billion is allocated to the UAE for drones, missiles, radar systems, and F-16 aircraft.
Additionally, approximately $8 billion was approved for air and missile defense radar systems to Kuwait, and an extra $70.5 million to Jordan for aircraft and munition support. The State Department claimed that this sale will support the foreign policy and national security objectives of the United States, and described the UAE as “a force for political stability and economic progress in the Middle East.”
The deal does not require congressional approval, as Secretary of State Marco Rubio allegedly provided detailed justification that an “emergency exists” requiring immediate arms sales. This comes amid a war between the US and Iran, which began on February 28 with attacks by the US and Israel on Iran, raising fears of a protracted regional conflict.
The war has caused a surge in global energy prices, with the US and Israel targeting Iranian energy facilities, including the Kharg Island oil port, and Iran responding with threats against energy infrastructure in US allies such as Qatar and Saudi Arabia. Furthermore, Iran has largely choked off tanker shipments through the Strait of Hormuz, a critical waterway for one-fifth of the world’s oil and gas.
Gas prices in the United States have jumped from $3.10 per gallon ($0.82 per liter) last month to $3.88 ($1.02 per liter) according to the American Automobile Association. The principal contractors for the deal include RTX Corporation, Northrop Grumman, and Lockheed Martin Corporation, but their stocks are trending downward on Wall Street.
The Pentagon is seeking additional funds to finance the war: the Department of Defense is requesting an extra $200 billion, as reported by The Associated Press, and Defense Secretary Pete Hegseth acknowledged seeking a significant spending boost from Congress. This request is on top of the additional $150 billion received by the military under President Donald Trump’s tax bill last year, bringing annual spending to over $1 trillion for the 2026 fiscal year.
Source: www.aljazeera.com