Israel and the U.S. are in talks to resolve their differences over the arms deal between Israel and Croatia involving $500 million worth of F-16 fighter jets. State Department officials told me the U.S. wants to see the deal go forward, but also stressed that Israel has to adhere to several conditions.
Why it matters: Israeli and Croatian officials are concerned the deal will collapse over conditions the U.S. presented. The Croatians are furious and demand Israel and the U.S. resolve the crisis. The Croatian deadline for approving the deal is the end of the budget year — Dec. 31.