The US State Department has formally notified Congress of a proposed sale of up to 48 Lockheed Martin F-35 fighter jets to Saudi Arabia, a deal that could reach $24.3 billion. The notification, made Thursday, marks a significant step in a long-discussed transaction that has drawn scrutiny over regional security and technology transfer concerns.
F-35 sale faces congressional and regional hurdles
The proposed sale has been under consideration for years, with Saudi Arabia seeking to acquire the advanced aircraft. Israel, the only Middle Eastern nation currently operating F-35s, has expressed reservations about being the first in the region to see the jets sold to another country. President Donald Trump indicated in November that the US would proceed with the sale ahead of Crown Prince Mohammed bin Salman's planned White House visit.
Analysts note that the F-35's sophisticated technology raises additional concerns due to Saudi Arabia's growing security ties with China. US officials maintain that Israel's qualitative military edge, which is legally required, can be preserved, but specific measures have not been publicly detailed. The deal now faces a 30-day congressional review period, during which lawmakers could block or condition the sale.
Oil prices slide as Saudi supply fears ease
Crude oil benchmarks fell about 2% on Thursday, with Brent dropping to a one-week low as Saudi Arabia began offering additional cargoes to Asian refiners via ship-to-ship transfers off Oman's Sohar port. These transfers are intended to offset disruptions caused by recent attacks on the East-West pipeline. Brent futures settled 1.68% lower at $104.05 per barrel, while West Texas Intermediate fell 1.16% to $101.24. Both benchmarks had already declined by roughly $3 on Wednesday.
The US Energy Secretary indicated that the pipeline could return to service faster than initially expected, with Saudi Arabia aiming to restore about half of its capacity within days. However, supply risks persist: three pumping stations were damaged in last week's attack, and tanker traffic through the Strait of Hormuz continues to decline. For more on the pipeline's impact, see the limits of Plan B and Brent's earlier spike.
Gold rebounds, silver jumps
Gold prices recovered sharply on Thursday after hitting a near six-week low the previous session. Spot gold rose 1.9% to $4,345.13 per ounce, while US gold futures for December settled slightly lower at $4,384.80. The rebound was driven by easing oil prices and a weaker US dollar, which slipped from a seven-week high, making dollar-priced gold more affordable for international buyers. The 10-year Treasury yield also declined, reducing pressure on non-yielding assets.
The Federal Reserve raised its benchmark rate by 25 basis points on Wednesday to a range of 3.75%-4%, signaling that further hikes could follow. Markets are pricing a 51% chance of another increase in October, according to the CME FedWatch tool. Silver climbed 4.2% to $65.60 per ounce, platinum gained 1.8% to $1,783.69, and palladium rose 1.6% to $1,289.45.
Bitcoin stabilizes near $76,500
Bitcoin traded near $76,500 on Thursday as US equities recovered from recent losses. The cryptocurrency had dipped below $76,000 following the Fed's rate decision but found support as stock markets turned higher. CryptoQuant's Bull Score Index stood around 60, down from 80 previously, indicating that while the trend remains bullish, momentum is weakening and macroeconomic risks could lead to a consolidation phase.
JPMorgan analysts highlighted differences in institutional positioning between Bitcoin and gold. Gold ETF demand has recovered more strongly, while Bitcoin ETF demand has only recouped about half of its earlier outflows. They also noted relatively high short interest in BlackRock's iShares Bitcoin Trust ETF compared with the SPDR Gold Shares ETF, suggesting a different hedging and positioning backdrop for the two assets.
As markets digest the Fed's stance and geopolitical developments, investors are closely watching for further signals on rate policy and supply dynamics. For broader context on rate decisions, see the Bank of England's recent hold.
This article is for informational purposes only and does not constitute financial advice.
