Global stocks erase losses, oil tumbles after Trump says US will end $4 billion funding to Israel

By Reuters and ToI Staff Today, 5:35 pm

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Stocks in Europe and the US reverse course to trade higher as oil prices drop after US President Donald Trump says Washington will stop $4 billion in military aid to Israel after the end of this year.

Speaking to Fox News’ “Fox and ‌Friends,” Trump said Israel no longer needs the funding. He has made a deal with Prime Minister Benjamin Netanyahu to stop the aid, he says, even though a bilateral MOU is only set to expire in September 2028.

The comments send oil prices lower and help stocks reverse their losses. The pan-European STOXX 600 index rises 0.13% to 650.3 points, while futures tracking the benchmark S&P 500 index add 0.14%.