Defense Stocks Slip From Record Highs: US Says Military Aid To Israel Hangs On Gaza Humanitarian Conditions

The United States has issued a stark warning to Israel, urging the government to take swift and meaningful steps within the next 30 days to address the deteriorating humanitarian conditions in Gaza.

Failure to act could result in potential restrictions on U.S. military aid, marking the strongest message sent by the Biden administration since the Israeli military offensive against Hamas began more than a year ago.

According to U.S. officials, Secretary of State Antony Blinken and Defense Secretary Lloyd Austin conveyed their concerns in a letter sent to Israeli officials on Sunday. The letter emphasized the urgent need for Israel to act, outlining specific measures that must be undertaken to alleviate the suffering of civilians in Gaza.

Key Points From US Letter: Aid, Humanitarian Action Required

The letter highlighted several steps that Israel must take to reverse the worsening situation in Gaza:

• Increase humanitarian aid access: Israel must allow a minimum of 350 aid trucks to enter Gaza daily. This would involve opening additional border crossings and ensuring the smooth flow of essential goods, such as food and medical supplies.
• Ensure humanitarian pauses: Israel is urged to institute pauses in military operations to facilitate aid deliveries, vaccinations, and the movement of displaced civilians.
• End forced evacuations: The U.S. specifically called for an end to forced evacuations of civilians in northern Gaza, allowing humanitarian organizations to access the area safely.

Failure to demonstrate progress on these measures, the U.S. warned, could have “serious implications” for Israel’s military aid under relevant U.S. laws.

The letter from Blinken and Austin said the U.S. government is particularly concerned about Israeli policies that could further limit the operations of humanitarian organizations like the United Nations Relief and Works Agency (UNRWA).

The U.S. has set a clear deadline for Israel to demonstrate its commitment to improving the situation in Gaza. This 30-day window will be crucial in determining the future of U.S. military aid to Israel.

🚨🇺🇸🇮🇱Secretary of State Blinken & Secretary of Defense Austin sent a letter on Monday to Israel demanding it takes steps within 30 days to improve the humanitarian situation in Gaza in order to avoid consequences in U.S. law for U.S. milirary aid to Israel. See letter here: pic.twitter.com/N9DDMqsL7u

— Barak Ravid (@BarakRavid) October 15, 2024

Market Reactions: U.S. Defense Stocks Slip, Israel ETFs Rise

On Tuesday, the iShares U.S. Aerospace & Defense ETF ITA saw a slight decline of 0.5%, after hitting record highs earlier in the session.

Conversely, the VanEck Israel ETF ISRA rose by 0.5%, marking its sixth consecutive session of gains.

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