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Politics
Mar 25, 2026

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

AI Summary
The US has approved a $16.5 billion arms deal with the United Arab Emirates, Kuwait, and Jordan as tensions with Iran continue to escalate. The deal includes $8.4 billion worth of arms to the UAE, $8 billion for air and missile defense radar systems to Kuwait, and $70.5 million to Jordan.

The United States Department of State has approved a significant arms deal worth $16.5 billion to Gulf states, including the United Arab Emirates, Kuwait, and Jordan. This move comes as tensions between the US and Iran continue to intensify.

The deal includes $8.4 billion worth of arms to the United Arab Emirates, which will be used to purchase drones, missiles, radar systems, and F-16 aircraft. Additionally, the US has approved roughly $8 billion for air and missile defense radar systems to Kuwait. Jordan will receive an additional $70.5 million to cover aircraft and munition support.

The State Department stated that the proposed sale will support the foreign policy and national security objectives of the United States by improving the security of a major defense partner. The UAE is considered a force for political stability and economic progress in the Middle East.

This arms deal 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, prompting fears of a protracted regional conflict. The war has also caused energy prices around the world to surge.

Iran has largely choked off tanker shipments through the Strait of Hormuz, a waterway through which a fifth of the world’s oil and gas travels. Gas prices in the United States have jumped from $3.10 per gallon ($0.82 per litre) on average this time last month to $3.88 ($1.02 per litre) on Thursday, according to the American Automobile Association (AAA).

The principal contractors in Thursday’s proposed sales will include RTX Corporation, Northrop Grumman, and Lockheed Martin Corporation. Despite the deals, all three companies’ stocks are trending downward on Wall Street.

The Pentagon is seeking more money to fund the war, with the US Department of Defense seeking an additional $200 billion, according to The Associated Press. Defense Secretary Pete Hegseth acknowledged that he was seeking a significant spending boost from Congress.