The United States has authorised a $16.5bn arms sale to Gulf allies, including the United Arab Emirates, Kuwait and Jordan, amid mounting tensions with Iran.
According to the US Department of State, the package includes $8.4bn worth of military equipment for the UAE, covering drones, missiles, radar systems and F-16 aircraft.
The agreement also allocates approximately $8bn for air and missile defence radar systems for Kuwait, alongside an additional $70.5m for Jordan to support aircraft and munitions.
“This proposed sale will support the foreign policy and national security objectives of the United States by improving the security of a major defense partner,” the State Department said in a statement.
“The UAE is a force for political stability and economic progress in the Middle East.”
Officials noted that the transaction does not require congressional approval, as Secretary of State Marco Rubio “provided detailed justification that an emergency exists that requires the immediate sale” of arms.
The move comes against the backdrop of escalating hostilities between Washington and Tehran. The administration of US President Donald Trump joined Israel in launching attacks on Iran on February 28, triggering concerns over a prolonged regional conflict.
The confrontation has also unsettled global energy markets, driving up oil and gas prices.
US and Israeli strikes have targeted Iranian energy infrastructure, including the Kharg Island oil terminal. In response, Iran has issued threats against energy assets in allied countries such as Qatar and Saudi Arabia.
Tehran has also significantly disrupted tanker traffic through the Strait of Hormuz, a crucial route responsible for transporting roughly one-fifth of the world’s oil and gas supply.
Fuel costs in the United States have climbed sharply, rising from an average of $3.10 per gallon ($0.82 per litre) last month to $3.88 ($1.02 per litre) on Thursday, according to the American Automobile Association (AAA).
The State Department identified RTX Corporation, Northrop Grumman and Lockheed Martin Corporation as the primary contractors for the deal.
Despite securing the contracts, shares of all three companies declined during midday trading on Wall Street. Lockheed Martin slipped 0.65 percent, RTX dropped 1.3 percent and Northrop Grumman fell by 0.8 percent.
Pentagon seeks additional funding
The arms agreement coincides with a push by the Pentagon for increased funding to sustain military operations.
The US Department of Defense is reportedly requesting an additional $200bn, according to The Associated Press, citing a senior White House official.
Speaking at a Thursday news conference, Defense Secretary Pete Hegseth did not confirm a specific figure but acknowledged the need for a substantial increase in funding.
“Obviously, it takes money to kill bad guys,” he said.
The proposed funding would add to the $150bn boost already approved under President Donald Trump’s tax legislation last July, the One Big Beautiful Bill Act, which raised total military spending for the 2026 fiscal year to over $1 trillion.
Any new allocation, however, would still require approval from Congress.
Trump defended the call for increased spending, pointing to broader global security concerns.
“We’re asking for a lot of reasons, beyond even what we’re talking about in Iran. This is a very volatile world,” Trump told reporters during a meeting with Japan’s Prime Minister Sanae Takaichi.
(REUTERS)
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