Actionable insights straight to your inbox

logo_equities.svg

Trump Administration To Sell 50 Stealth F-35 Fighter Jets to United Arab Emirates

The jets are part of a broader $23 billion deal aimed at deterring potential threats from Iran.
The Associated Press is an independent, not-for-profit news cooperative headquartered in New York City. Our teams in over 100 countries tell the world’s stories, from breaking news to investigative reporting. We provide content and services to help engage audiences worldwide, working with companies of all types, from broadcasters to brands.
The Associated Press is an independent, not-for-profit news cooperative headquartered in New York City. Our teams in over 100 countries tell the world’s stories, from breaking news to investigative reporting. We provide content and services to help engage audiences worldwide, working with companies of all types, from broadcasters to brands.

Image source: Lockheed Martin

By Matthew Lee

WASHINGTON (AP) — The Trump administration formally notified Congress on Tuesday that it plans to sell 50 stealth F-35 fighter jets to the United Arab Emirates as part of a broader arms deal worth $23 billion aimed at deterring potential threats from Iran despite concern in Israel.

Secretary of State Mike Pompeo said he had authorized the sale in keeping with the administration’s Middle East peace efforts. The notification to lawmakers follows the signing of the Abraham Accords between Israel, Bahrain and the UAE, under which the Arab states have agreed to normalize relations with Israel.

“This is in recognition of our deepening relationship and the UAE’s need for advanced defense capabilities to deter and defend itself against heightened threats from Iran,” Pompeo said in a statement.

Israeli officials have previously expressed some concern about an F-35 sale because it could affect the balance of military power in the region. But Pompeo said it would be “fully consistent” with the longstanding policy of maintaining Israel’s qualitive military advantage.

The sale, worth up to $23.37 billion, includes 50 F-35s, 18 advanced armed drone systems and a package of air-to-air and air-to-ground munitions.

“The UAE’s historic agreement to normalize relations with Israel under the Abraham Accords offers a once-in-a-generation opportunity to positively transform the region’s strategic landscape,” Pompeo said. “Our adversaries, especially those in Iran, know this and will stop at nothing to disrupt this shared success.”

After agreeing to normalize relations with Israel in August, Emirati officials had said purchasing the F-35s was among their main goals. At the time Israeli officials denied they had agreed to the sale but later dropped public objections to it.

_____

Source: AP News, Lockheed Martin

The implications of the dollar potentially losing its status as the global reserve are numerous. Obviously, there may be currency risks, and decreased demand for U.S. Treasuries could lead to rising interest rates. I would also expect to see massive commodity price swings.
Many of us economy-watchers have been expecting recession, though with significant differences on odds and timing. Regardless, recent banking developments just made recession more likely and may have accelerated its onset.
Many people think of position size in terms of how many shares they own of a particular stock. But it’s much smarter to think of it in terms of what percentage of your total capital is in a particular stock.