Iran: US Authorises $16.5bn Arms Sale to UAE, Kuwait, Jordan

US Authorises $16.5bn Arms Sale to UAE

Iran: US Authorises $16.5bn Arms Sale to UAE, Kuwait, Jordan

The United States has approved a $16.5 billion arms sale to key Gulf allies — including the United Arab Emirates, Kuwait, and Jordan — as tensions escalate between Washington and Iran over regional security and military confrontations.

The approval was issued by the United States Department of State, which said the package is aimed at strengthening air defence, missile systems, and overall military readiness among allied nations in the Middle East. The deal allocates approximately $8.4 billion in advanced military equipment for the UAE, including drones, missiles, radar systems, and upgrades for F-16 fighter aircraft. Kuwait is set to receive about $8 billion worth of air and missile defence radar systems, while Jordan will receive around $70.5 million in aircraft support equipment and munitions.

Officials said the package is intended to enhance the defensive capabilities of partner countries and support broader U.S. strategic interests in maintaining stability in the region. The State Department noted that the UAE remains a key security and economic partner, describing the deal as consistent with U.S. foreign policy objectives aimed at improving the security of allied nations.

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The transaction was approved under emergency provisions, with Secretary of State Marco Rubio authorising the sale without the usual congressional review, citing urgent national security considerations. Major U.S. defence contractors involved in the deal include RTX Corporation, Northrop Grumman, and Lockheed Martin.

The arms deal comes amid heightened hostilities linked to the ongoing conflict involving Iran. The administration of U.S. President Donald Trump has been engaged in military coordination with allies following reported strikes on Iranian targets, including energy infrastructure. The escalation has raised fears of a broader regional war, with Iran issuing warnings against attacks on its interests and threatening retaliation against energy assets in allied countries such as Saudi Arabia and Qatar.

The conflict has also disrupted global energy markets, particularly through tensions around the Strait of Hormuz, a critical shipping lane that carries a significant share of the world’s oil supply. Rising instability has contributed to increased fuel prices in the United States, with averages climbing from around $3.10 per gallon to $3.88 per gallon, reflecting the broader economic impact of the geopolitical crisis. Iran’s actions in the region, including threats and reported interference with tanker traffic, have further heightened concerns over global supply chains and energy security.

The arms approval coincides with a push by the U.S. Department of Defense for additional funding to sustain military operations. Reports indicate the Pentagon may seek up to $200 billion in extra funding, on top of previously approved defence spending increases. U.S. officials have emphasised the need for expanded resources to address evolving global threats, with Trump noting that increased spending reflects broader international security challenges. Any additional funding would require congressional approval, highlighting ongoing debates in Washington over defence priorities and fiscal policy.