Netanyahu’s New Economic Pivot: Less Money From US, Stronger Gulf Ties

Last Updated:May 11, 2026, 16:55 IST

Benjamin Netanyahu says Israel aims to end US military aid within a decade, seeks reset of ties with Gulf amid Iran war and rising fuel prices linked to Strait of Hormuz risks.

As the war with Iran alongside the United States continues, Prime Minister Benjamin Netanyahu has said he hopes to wean Israel off the US military support within a decade while pushing to strengthen ties with Gulf states.

“I want to draw down to zero the American financial support, the financial component of the military cooperation that we have," Netanyahu told CBS News’ “60 Minutes" programme.

He further said Israel received about $3.8 billion of US military aid a year. According to Reuters, the US has agreed to provide a total of $38 billion ​in military aid to Israel from 2018 to 2028.

During an interview with CBS News, the Israeli Prime Minister pointed out that it was “absolutely" the right time to reset the bilateral relationship. “I don’t want to wait for the next Congress," he told CBS. “I want ​to start now."

According to Reuters, Israel has long had bipartisan consensus within the US Congress for military aid, but support from lawmakers and ​the public has frayed since the outbreak of war in Gaza in October 2023.

The war and Iran throttling marine traffic through the Strait of Hormuz have led to a sharp rise in gasoline prices.

Netanyahu has pushed back against suggestions that he oversold the prospects of a swift and decisive war against Iran to the United States, while also acknowledging that no side fully anticipated the risks surrounding the Strait of Hormuz and the broader regional fallout.

In an interview with CBS News aired after the Iran conflict, Netanyahu rejected parts of a New York Times investigation published on April 7 that claimed he presented a highly optimistic case to US President Donald Trump ahead of military action against Iran.

“That’s actually incorrect," Netanyahu told CBS when asked about the report.

“It’s incorrect in the sense that I said, ‘Oh, well, it’s guaranteed we can do it,’ and so on."

News world Netanyahu’s New Economic Pivot: Less Money From US, Stronger Gulf Ties

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