The proposed deal contains the sale of drones, missiles and radars for Gulf allies, together with UAE, Kuwait and Jordan.
Revealed On 19 Mar 2026
America Division of State has permitted a $16.5bn deal for arms gross sales to the United Arab Emirates, Kuwait and Jordan as tensions with Iran proceed to accentuate.
On Thursday, the State Division defined that $8.4bn value of arms would go to the United Arab Emirates to pay for drones, missiles, radar methods and F-16 plane.
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As a part of the deal, Washington additionally permitted roughly $8bn for air and missile defence radar methods to Kuwait and an extra $70.5m to Jordan, which might cowl plane and munition assist.
“This proposed sale will assist the international coverage and nationwide safety targets of america by bettering the safety of a significant protection accomplice,” the State Division stated in an announcement.
“The UAE is a drive for political stability and financial progress within the Center East.”
The assertion added that the proposed deal didn’t require congressional approval, provided that Secretary of State Marco Rubio “offered detailed justification that an emergency exists that requires the quick sale” of arms.
The sale comes amid ever-increasing tensions between the US and Iran. The administration of US President Donald Trump joined Israel in attacking Iran on February 28, and the ensuing conflict has prompted fears of a protracted regional battle.
The conflict has additionally prompted power costs all over the world to surge.
The US and Israel have attacked Iranian power services, together with the oil port Kharg Island, and Iran has responded with threats towards energy infrastructure in US allies, equivalent to Qatar and Saudi Arabia.
As well as, Iran has largely choked off tanker shipments by means of the Strait of Hormuz, a waterway by means of which a fifth of the world’s oil and fuel travels.
Gasoline costs in america have jumped from $3.10 per gallon ($0.82 per litre) on common this time final month to $3.88 ($1.02 per litre) on Thursday, in accordance with the American Vehicle Affiliation (AAA).
The State Division stated the principal contractors in Thursday’s proposed gross sales will embody RTX Company, Northrop Grumman and Lockheed Martin Company.
Regardless of the offers, all three corporations’ shares are trending downward on Wall Avenue. Lockheed Martin is down 0.65 % at this time. RTX was additionally slumping by 1.3 % and Northrop Grumman by 0.8 % in noon buying and selling.
Looking for funding
The newest arms deal comes because the Pentagon seeks more cash to fund the conflict.
The US Division of Protection is searching for an additional $200bn, in accordance with The Related Press, citing an unnamed senior White Home official.
In a Thursday morning information convention, Protection Secretary Pete Hegseth didn’t affirm a precise greenback quantity, however he did acknowledge he was searching for a major spending increase from Congress.
“Clearly, it takes cash to kill dangerous guys,” he stated.
The request for extra funds comes on high of further funding the Protection Division obtained beneath President Donald Trump’s tax invoice final July, often known as the One Large Stunning Invoice Act.
It included an extra $150bn in funds for the army, bringing its annual spending to greater than $1 trillion for the 2026 fiscal 12 months.
Any new funds, nevertheless, would want Congressional approval. Trump, nevertheless, defended the proposed spending enhance, citing geopolitical threats from all over the world.
“We’re asking for lots of causes, past even what we’re speaking about in Iran. It is a very risky world,” Trump advised reporters throughout a gathering with Japan’s Prime Minister Sanae Takaichi.
