LONDON: Oil prices fell by more than 3% on Tuesday after US President Donald Trump said Washington would stop providing Israel with $4 billion in annual military aid by the end of this year.
Brent crude, which had been rising earlier in the day, reversed direction and dropped to around $101 a barrel, its lowest level in more than three weeks. The decline followed reports that the United States had struck Iran’s Qeshm Island on Monday, which had earlier pushed prices higher.
Trump said he had reached an agreement with Israeli Prime Minister Benjamin Netanyahu months ago to end the annual military funding, without providing further details.
“Bibi Netanyahu and I have made a deal that we give Israel $4 billion a year, and we made a deal months ago that we’re stopping,” Trump told Fox News’ Fox & Friends programme in a phone interview.
BREAKING: President Trump says the U.S. will end roughly $4 billion in annual aid to Israel by the end of the year, revealing that Prime Minister Benjamin Netanyahu agreed to the decision. “Because they don’t need it,” Trump said during an exclusive interview on @foxandfriends, describing Israel as a thriving country that no longer requires American financial assistance. Trump also said Netanyahu raised the idea of ending the aid himself. He emphasized that Israel remains one of America’s most reliable allies as the two countries prepare for a major shift in their financial relationship. Download the FOX News app for the latest details: https://t.co/ISpW9Fc0R3
— Fox News (@FoxNews) November 3, 2026
He said the payments would end by December 31, adding that the United States would still help Israel if needed.
Trump said Israel no longer required the funding. He also suggested that US aid to Israel had become a political issue for Democrats and left-wing politicians.
The US President said Netanyahu had himself raised the possibility of ending the aid.
The latest decline added to oil’s sharpest one-day fall in three months on Monday, after Trump told NBC News that he was not planning to attack Iran following the US midterm elections.
