Geopolitics and Markets Review – 27th November 2023

Israel and The USA – The Foothold In The Middle East

Contents

1. Introduction

2. How Significant Is Israel To The West?

3. How Israel Benefits From The Partnership With The United States

4. Why Israel Is The US’ Foothold In The Middle East

5. Concluding Remarks

6. Discussion On The Israeli-Hamas Ceasefire

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The Bitesize Version

• Israel is a designated non-NATO ally of the United States. This is something Saudi Arabia does not possess. The potential Saudi Arabia-Israeli normalization discussions were rumoured to include this addition for Saudi Arabia-U.S. relations.

• The United States immediately showed support for the Israeli state, and that relationship has developed into one of the strongest in global geopolitics. This is seen through economic and military aid.

• The Middle East has seen periods in the past century of deep conflict and tension. The United States has always had a strong relationship with the Israelis from which it can work to promote Middle Eastern peace and security.

For an expansion on the bite-size version of this piece, continue below.

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Introduction

Israel is known as a major non-NATO ally of the United States. Other states with MNNA designation in the Middle East are Bahrain, Egypt, Jordan, Kuwait, and Qatar. Interestingly, Saudi Arabia is not one such state.

How will a potential normalization between Saudi Arabia and Israel tie into oil, US interests in the Middle East, and Saudi Arabia’s positioning on the tightrope with its multipolar world balancing act? Before that, let's explore the unique Israel-U.S. relationship.

Photo by David Beale on Unsplash

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How Significant Is Israel To The West?

Back in 1948, President Harry Truman was the first world leader to recognise Israel as a Jewish state. He made this statement eleven minutes after the state of Israel was created, signifying how the United States saw a clear opportunity to gain a strong partner in the Middle East. Israel being backed by the global policeman has contributed to the rapid Israeli rise. From the Israeli point of view, the first advantage of this strong relationship with the United States is financial and technological. The second is through military aid.

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How Israel Benefits

Financial

Since Israel’s creation, the United States has provided aid and support. The U.S. also allowed Israel to borrow from US banks at below the market rate. Between 1951 and 2022, Israel received $92.7B in US economic aid.