Trump Ends US Military Aid to Israel as Oil Prices Slide

US President Donald Trump announced on Tuesday, November 3, that Washington would end its military assistance to Israel by the end of 2026, saying the country no longer needed American financial support. The announcement came during an Election Day interview with Fox News and coincided with movements in global oil markets amid escalating tensions involving the United States, Israel, and Iran.

Trump indicated that the decision would affect approximately $4 billion in assistance. The announcement also coincided with a 3% decline in Brent crude prices, according to The Guardian's market coverage.

The United States currently provides Israel with $3.8 billion in annual military assistance under a 10-year memorandum of understanding that took effect in 2018. The agreement is scheduled to expire in 2028.

Trump suggested that he intended to terminate the arrangement earlier, at the end of this year. He also indicated that the assistance could take different forms, including financial transfers and military equipment.

Explaining his position during the Fox News interview, Trump argued that continued assistance had become a political issue in the United States.

"It's a bad talking point because when you say, 'Why don't we give everybody $4 billion?' Israel's our number one; we give them more than anybody else, and they no longer need it," Trump said.

He questioned why Republicans should face political criticism over the assistance, particularly from Democratic candidates such as Michigan Senate nominee Abdul El-Sayed.

Trump also indicated that discussions with Israeli Prime Minister Benjamin Netanyahu had influenced the decision, claiming the two leaders had reached an understanding.

"You can consider it barter. You can consider military aid or cash. What we give them — $4 billion of things and money — and they don't need it. And I was approached by Bibi Netanyahu, and we've been talking about it for a couple of years because it's a lot of money," Trump said.

When asked whether the proposed withdrawal concerned military equipment or direct financial assistance, Trump responded:

"Any way you want to define it," Trump said.

He added that Israel would retain the ability to purchase military equipment independently.

"They can buy whatever they want," Trump said.

Trump further argued that the United States should not continue providing assistance if Israel no longer required it. He suggested that Washington would maintain the support if circumstances changed.

Netanyahu has previously expressed support for reducing Israel's dependence on American military funding. In an interview with an Israeli television channel shortly before the latest election, he acknowledged that the country would eventually have to operate without the assistance.

"If you think we're going to continue receiving what I secured twice, tens of billions of dollars in American aid for the defense budget, get used to the fact that we won't," Netanyahu said.

The Israeli and American governments began formal discussions in May on a replacement agreement for the existing military assistance arrangement. However, CNN reported that the details of any potential new framework remained unclear.

The last publicly reported telephone conversation between Trump and Netanyahu took place on Saturday. It was not immediately clear whether the leaders had spoken again before Trump's announcement. CNN said it had contacted both the White House and Netanyahu's office for comment.

Washington had also authorized a separate $4 billion military assistance package for Israel in March 2025, following the collapse of the second Gaza ceasefire.

Meanwhile, Brent crude experienced significant volatility as developments surrounding the US-Israeli conflict with Iran continued to influence energy markets. The Guardian reported that the benchmark initially climbed $2.38 per barrel, or 2.2%, to $107.15 following reports of limited US strikes on Iran's Qeshm Island late Monday.

The increase followed an 11% decline on Monday, when Brent crude fell to $103.28 per barrel after Trump indicated that he was prepared to allow more time for diplomatic efforts. Before the conflict began on February 28, Brent had traded at approximately $72 per barrel.

The latest movements highlight the sensitivity of international energy markets to geopolitical developments, including military operations and changes in US foreign policy toward its Middle Eastern allies.