US Approves $16.5 Billion Arms Deal for Gulf States Amid Rising Tensions

US Approves $16.5 Billion Arms Deal with Gulf Allies

The US Department of State has approved a deal worth $16.5 billion to sell arms to the United Arab Emirates, Kuwait, and Jordan. The proposed sale includes drones, missiles, radar systems, F-16 aircraft, and air and missile defence radar systems.

According to the State Department, $8.4 billion will be allocated to the UAE for the purchase of these items. Additionally, $8 billion will go towards air and missile defence radar systems for Kuwait, while an additional $70.5 million will support Jordan’s aircraft and munition needs.

The sale was approved without congressional oversight, as Secretary of State Marco Rubio provided justification that an emergency exists requiring immediate arms sales. The deal comes amid heightened tensions between the US and Iran, which has led to increased military activity in the region.

The administration of President Donald Trump has been involved in several military operations against Iranian targets, including a joint attack with Israel on February 28. This has resulted in concerns about a prolonged regional conflict and its impact on global energy markets. The war has caused energy prices to surge worldwide, with gas prices in the US increasing from $3.10 per gallon last month to $3.88 per gallon this week.

The principal contractors for the proposed sales are RTX Corporation, Northrop Grumman, and Lockheed Martin Corporation. Despite the deal, shares of these companies have declined on Wall Street. The Pentagon is seeking additional funding to support ongoing military operations, with a request for an additional $200 billion.

Source: Al Jazeera