The proposed deal contains the sale of drones, missiles and radars for Gulf allies, together with UAE, Kuwait and Jordan.
Printed On 19 Mar 2026
The US 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 help.
“This proposed sale will help the international coverage and nationwide safety aims of america by bettering the safety of a serious protection companion,” the State Division mentioned in a press release.
“The UAE is a power 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 rapid 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 brought about power costs world wide 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, resembling Qatar and Saudi Arabia.
As well as, Iran has largely choked off tanker shipments by way of the Strait of Hormuz, a waterway by way of which a fifth of the world’s oil and fuel travels.
Fuel 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 keeping with the American Vehicle Affiliation (AAA).
The State Division mentioned the principal contractors in Thursday’s proposed gross sales will embrace RTX Company, Northrop Grumman and Lockheed Martin Company.
Regardless of the offers, all three firms’ shares are trending downward on Wall Road. Lockheed Martin is down 0.65 p.c in the present day. RTX was additionally slumping by 1.3 p.c and Northrop Grumman by 0.8 p.c in noon buying and selling.
Searching for funding
The most recent arms deal comes because the Pentagon seeks extra money to fund the conflict.
The US Division of Protection is searching for an additional $200bn, in keeping with The Related Press, citing an unnamed senior White Home official.
In a Thursday morning information convention, Protection Secretary Pete Hegseth didn’t verify a precise greenback quantity, however he did acknowledge he was searching for a big spending increase from Congress.
“Clearly, it takes cash to kill dangerous guys,” he mentioned.
The request for extra funds comes on prime of further funding the Protection Division obtained beneath President Donald Trump’s tax invoice final July, often known as the One Huge Lovely Invoice Act.
It included an extra $150bn in funds for the navy, bringing its annual spending to greater than $1 trillion for the 2026 fiscal yr.
Any new funds, nonetheless, would want Congressional approval. Trump, nonetheless, defended the proposed spending improve, citing geopolitical threats from world wide.
“We’re asking for lots of causes, past even what we’re speaking about in Iran. This can be a very risky world,” Trump advised reporters throughout a gathering with Japan’s Prime Minister Sanae Takaichi.
