Netanyahu postpones US visit 1 day before planned departure

The postponement of Netanyahu's US visit, originally scheduled for Saturday, injects fresh uncertainty into US-Israel diplomatic scheduling as both sides navigate the delayed funeral of Senator Lindsey Graham, a key Republican ally of Israel.

"We are coordinating with the White House to reschedule at the earliest possible opportunity," an Israeli official familiar with the planning said, speaking on condition of anonymity because the discussions are private.

The visit was set to include Netanyahu's first face-to-face meeting with Trump since the president returned to office in January, alongside attendance at Graham's funeral. Graham, a South Carolina Republican who served in the Senate since 2003, was one of Israel's staunchest supporters in Congress, consistently advocating for military aid and backing Jerusalem's position on contested issues. The funeral's postponement triggered the cascade of scheduling changes.

The delay postpones what would have been a high-stakes diplomatic engagement at a time when the US is mediating cease-fire negotiations between Israel and Hamas, with the most recent round of talks in Doha failing to produce a breakthrough. Any rescheduling will need to accommodate both leaders' calendars while addressing a crowded Middle East agenda that includes Iran's nuclear program and normalization talks with Saudi Arabia.

The trip's postponement comes as the White House has been pressing for progress on multiple fronts in the region. US special envoy for the Middle East has been shuttling between Jerusalem and Ramallah in recent weeks, seeking to revive a framework for a two-state solution that Netanyahu's coalition has publicly opposed.

Markets showed limited reaction to the scheduling change, with the shekel trading near recent levels and the Tel Aviv Stock Exchange's TA-35 index edging lower in afternoon trading. Safe-haven assets saw modest gains, with gold rising and the US dollar index holding firm, reflecting broader geopolitical uncertainty rather than Israel-specific risk.

The last time a planned Netanyahu-Trump meeting was disrupted was in 2020, when the prime minister canceled a visit during political turmoil in Israel that saw three elections in 12 months. That period coincided with a decline in the shekel and a drop in Israeli equities, according to Bloomberg data. The current political environment in Israel is more stable, with Netanyahu's coalition holding a comfortable majority in the Knesset.

Defense stocks with exposure to Israeli contracts, including Elbit Systems Ltd., traded flat on the news, suggesting investors view the postponement as a logistical issue rather than a diplomatic rift. The US Congress approved $3.8 billion in annual military aid to Israel in the most recent budget, reflecting the strategic importance of the bilateral relationship.

A new date for the visit has not yet been announced. The Israeli Prime Minister's Office said it would provide updates on rescheduling in due course.

This article is for informational purposes only and does not constitute investment advice.