US approves $16.5 billion arms sales to Gulf allies as Iran war escalates regional tensions

Middle East, News, US March 21, 2026 , by IRIA Comments Off

6 minute read

The United States has approved more than $16.5 billion in potential arms sales to the United Arab Emirates, Kuwait, and Jordan, as military operations linked to the ongoing war with Iran continue to escalate across the Middle East.

The U.S. State Department confirmed on March 19, 2026, that it had notified Congress of the proposed deals, which include advanced missile systems, radar technology, and aircraft support equipment.

The move comes at a time when missile and drone attacks are increasing across the region, placing growing pressure on air defense systems used by both U.S. forces and their allies.

The sales are being fast-tracked under an emergency determination, allowing the administration to bypass the usual congressional review process. Officials said the decision reflects urgent security concerns tied to the widening conflict with Iran.

Breakdown of Arms Deals

The largest portion of the package will go to the United Arab Emirates, with deals valued at more than $8.4 billion. The proposed sale includes a mix of advanced systems such as radar technology, air-to-air missiles, counter-drone capabilities, and upgrades for F-16 fighter jets.

Among the key components is a long-range radar system worth $4.5 billion, designed to integrate with the UAE’s Terminal High Altitude Area Defense (THAAD) system. This would strengthen the country’s ability to detect and intercept incoming missile threats at long distances.

*^{Terminal High Altitude Area Defense (THAAD) Weapon System. (Image Credit: Lockheed Martin)}*

The UAE package also includes a $2.1 billion fixed-site system aimed at countering small drones, which have become a major threat in recent conflicts. In addition, the deal covers $1.22 billion in medium-range air-to-air missiles (AMRAAMs) and $644 million in F-16 munitions and aircraft upgrades.

Kuwait is set to receive a separate package worth approximately $8 billion. This deal focuses on lower-tier air and missile defense sensor radars, designed to detect and respond to shorter-range threats such as drones and tactical missiles.

Jordan’s share of the agreement is significantly smaller, valued at $70.5 million. It is focused primarily on aircraft maintenance, repair, and munitions support to sustain the country’s existing fleet.

Together, the three deals aim to strengthen what officials describe as a “layered” air defence network across the region, capable of responding to threats at multiple ranges and from different directions.

Rising Tensions with Iran

The arms sales come against the backdrop of an intensifying conflict involving the United States, Israel, and Iran. The administration of U.S. President Donald Trump joined Israeli military operations against Iran on February 28, triggering a broader regional confrontation that has shown little sign of slowing.

Since then, attacks have targeted key energy infrastructure, including Iran’s Kharg Island oil port. In response, Tehran has issued warnings that it could strike energy facilities in U.S.-allied countries such as Saudi Arabia and Qatar.

*^{The USS Thomas Hudner fires a Tomahawk land attack missile in support of Operation Epic Fury in the U.S. Central Command area of responsibility, on March 5, 2026. (Image Credit: U.S. Navy)}*

The situation has also disrupted global energy markets. Iran has significantly restricted tanker traffic through the Strait of Hormuz, a critical waterway through which roughly one-fifth of the world’s oil and gas supplies pass.

As a result, fuel prices have surged. In the United States, average gas prices have climbed from $3.10 per gallon last month to $3.88 per gallon as of Thursday, according to data from the American Automobile Association.

Officials say the new arms packages are intended to help regional allies defend against exactly these kinds of threats, particularly missile and drone attacks targeting critical infrastructure.

Emergency Approval and Strategic Justification

In its statement, the State Department said the proposed sales support U.S. foreign policy and national security objectives by strengthening the capabilities of key regional partners.

“The UAE is a force for political stability and economic progress in the Middle East,” the department said, adding that enhancing its defensive capabilities aligns with broader U.S. strategic goals.

Secretary of State Marco Rubio justified the emergency approval by stating that immediate action was necessary due to the rapidly evolving security situation. This allowed the administration to bypass the standard congressional approval process required under the Arms Export Control Act.

^{An F-35C Lightning II is staged for flight operations on the flight deck of the USS Abraham Lincoln in support of Operation Epic Fury in the U.S. Central Command area of responsibility, on March 3, 2026. (Image Credit: U.S. Navy)}

Officials argue that delays in approving such sales could leave allies vulnerable at a time when missile and drone attacks are becoming more frequent and sophisticated.

Defense Industry and Market Reaction

The principal contractors involved in the deals include major U.S. defense companies such as RTX Corporation, Northrop Grumman, and Lockheed Martin Corporation.

Despite securing these large potential contracts, all three companies saw their stock prices decline during midday trading on Thursday. Lockheed Martin was down 0.65 percent, RTX dropped 1.3 percent, and Northrop Grumman fell by 0.8 percent.

Analysts suggest the downturn may reflect broader market uncertainty rather than concerns about the deals themselves.

The arms sales announcement comes as the U.S. Department of Defense seeks a significant increase in funding to sustain ongoing military operations.

According to reports, the Pentagon is requesting an additional $200 billion, though Defense Secretary Pete Hegseth did not confirm a specific figure during a Thursday news conference. He acknowledged, however, that a substantial budget increase is necessary. “Obviously, it takes money to kill bad guys,” Hegseth said.

^{A High Mobility Artillery Rocket System (HIMARS) launcher of the U.S. Air Force Special Operations Task Group at Ali Al Salem Air Base, Kuwait. (Image Credit: U.S. Kentucky National Guard Public Affairs Office)}

The request would add to the already increased military spending approved under President Trump’s tax legislation last year, known as the One Big Beautiful Bill Act. That package included an additional $150 billion, pushing total U.S. defense spending to more than $1 trillion for the 2026 fiscal year.

Any new funding request would still require approval from Congress. President Trump defended the need for higher defense spending, pointing to growing global instability. Speaking alongside Japan’s Prime Minister Sanae Takaichi, he said, “We’re asking for a lot of reasons, beyond even what we’re talking about in Iran. This is a very volatile world.”

Growing Pressure on Air Defense Systems

The surge in demand for air defense systems highlights concerns that current U.S. and allied stockpiles may not be sufficient to keep pace with ongoing operations.

Analysts warn that the rate at which missiles and interceptors are being used could exceed production capacity, raising questions about long-term sustainability if the conflict continues.

The latest arms deals are seen as part of a broader effort to address those concerns by strengthening regional defense networks and reducing reliance on U.S.-operated systems.

As the conflict with Iran continues to unfold, the new weapons packages signal a deeper U.S. commitment to supporting its allies while preparing for the possibility of a prolonged and increasingly complex regional war.