Netanyahu eyes US aid phaseout as Iran tensions push oil prices higher

Israeli Prime Minister Benjamin Netanyahu has said on a broadcast interview aired on CBS’s “60 Minutes” that he would like to “draw down to zero the American financial support” for Israel and its military amid remarks that the war with Iran is far from over.

Netanyahu mentioned these thoughts in his first US broadcast interview since the conflict in Iran started, speaking with CBS News correspondent Major Garrett on Sunday.

The interview aired as the war between the US and Iran now moves into its 11th week.

He claims the war is not in any way over yet, citing unresolved threats from enriched uranium, proxy forces, and ballistic missile programs.

This comes as suspected Iranian drone strikes in the Persian Gulf tested a fragile ceasefire the same day it was announced.

Israel and Iran war, Strait of Hormuz and oil price fallout

The war’s economic toll has been felt globally, as its consequences have continued to mount in the past weeks.

Iran’s military actions against neighboring Gulf states disrupted shipping through the Strait of Hormuz, a chokepoint for roughly one-fifth of the entire world’s oil supply.

Cryptopolitan has previously reported that the closure sent energy prices into sharp, rapid rises all over the world, climbing as oil markets traded in a continuous disruption of oil supply.

White House efforts to close a deal that would reopen the strait and stabilize energy prices remain ongoing, according to CBS News.

Netanyahu acknowledged that the threat to the Hormuz Strait “became understood” as fighting progressed, and conceded he does not “claim perfect foresight.”

BREAKING: Israel’s President Netanyahu says he wants US financial support to Israel to “draw down to zero.” pic.twitter.com/IPnTXAVC3B

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US financial aid phase out and what this means

Netanyahu’s interest in phasing out US financial support is a change in rhetoric, given Israel receives billions annually in military aid from the US.

The prime minister said Israel receives about $3.8 billion of US military aid per year. The US had also agreed to provide a whooping $38 billion to Israel in military aid from 2018 till 2028.

Netanyahu did not provide a timeline or specifics on how the phasing out to zero would work during the interview. However, this stand is not surprising as Israel has become increasingly unpopular among US citizens.

A survey conducted by Pew research in March stated that sixty percent of US adults have a rather unfavorable sentiment towards Israel, while 59% of the respondents had little belief in Netanyahu to make right decisions regarding global affairs.

The prime minister has also claimed that it was “absolutely the right time” to reset the US-Israeli financial relationship, stating that he “didn’t want to wait for the next congress.”

Global crude oil markets have also reacted to this flurry of news with slight surges as Brent crude currently trades at $104.6 at the time of writing, up 3.2%.

WTI crude, natural gas, and gasoline are also all up 3.76%, 2.54%, and 1.89% respectively as at the time of writing.