President Donald Trump has announced that the US will halt its $4 billion annual aid to Israel by the end of the year. This decision was reportedly made in a deal with Israeli Prime Minister Benjamin Netanyahu.
What happened
Trump stated that the idea to stop the aid was Netanyahu's, who had previously suggested tapering off American aid over the next decade. The US has agreed to give Israel $3.8 billion annually as part of a memorandum of understanding signed in 2016. However, the total amount of aid is higher, with the US spending at least $21.7 billion in military aid to Israel in the two years following the Hamas-led attack on Israel in 2023.
Netanyahu's office declined to comment on the decision, while his domestic political opponents criticized the move, saying it poses a danger to Israel's security and quality of life. The price of Brent crude oil initially dropped 3% in response to Trump's comments, possibly due to investors viewing the decision as evidence that the Iran war could be ended without escalation.
