The proposed agreement includes the sale of drones, missiles and radars to Gulf allies including the UAE, Kuwait and Jordan.
Published March 19, 2026
Amid rising tensions with Iran, the US State Department has approved a $16.5 billion arms sales deal to the United Arab Emirates, Kuwait, and Jordan.
On Thursday, the State Department explained that $8.4 billion worth of weapons would be sent to the United Arab Emirates to purchase drones, missiles, radar systems, and F-16 aircraft.
Recommended stories
list of 4 itemsend of list
As part of the agreement, Washington also approved approximately $8 billion for air and missile defense radar systems to Kuwait and an additional $70.5 million to Jordan covering aircraft and ammunition support.
“This proposed sale will support U.S. foreign policy and national security objectives by improving the security of key defense partners,” the State Department said in a statement.
“The UAE is a force promoting political stability and economic development in the Middle East.”
The statement added that the proposed deal does not require Congressional approval, as Secretary of State Marco Rubio has “justified in detail that an emergency exists that requires an immediate sale” of weapons.
The sale comes amid rising tensions between the United States and Iran. US President Donald Trump’s administration attacked Israel and Iran on February 28, raising concerns that the resulting war could lead to a prolonged regional conflict.
The war also caused a spike in energy prices around the world.
The United States and Israel have attacked Iranian energy facilities, including the oil port of Kharg Island, and Iran has responded with threats against the energy infrastructure of U.S. allies such as Qatar and Saudi Arabia.
Additionally, Iran has largely blocked tanker shipping through the Strait of Hormuz, a waterway through which one-fifth of the world’s oil and gas passes.
Gasoline prices in the U.S. averaged $3.10 a gallon ($0.82 a liter) at this time last month, but jumped to $3.88 a liter ($1.02 a liter) on Thursday, according to the American Automobile Association (AAA).
The State Department announced Thursday that prime contractors in the proposed sale include RTX, Northrop Grumman and Lockheed Martin.
Despite the deal, the stocks of all three companies are trending lower on Wall Street. Lockheed Martin fell 0.65% today. RTX also fell 1.3% in midday trading, and Northrop Grumman fell 0.8%.
seeking funds
The latest arms deal comes as the Pentagon seeks more money to fund its war effort.
The Pentagon is seeking an additional $200 billion, the Associated Press reported, citing unnamed White House officials.
At a news conference Thursday morning, Defense Secretary Pete Hegseth did not confirm the exact amount, but acknowledged that he is asking Congress for a significant spending increase.
“Obviously, it costs money to kill bad guys,” he said.
This request for additional funding is in addition to additional funding the Department of Defense received under President Donald Trump’s tax bill last July, known as the “One Big Beautiful Bill Act.”
It includes $150 billion in additional funding for the military, bringing annual spending to more than $1 trillion in fiscal year 2026.
However, the new fund will require parliamentary approval. But President Trump defended the spending increases, citing geopolitical threats from around the world.
“We’re looking for a lot of reasons beyond even the Iran story. This is a very unstable world,” President Trump told reporters during a meeting with Japanese Prime Minister Sanae Takaichi.
