Netanyahu Says Influx of Cash to Iran to Boost Its Support for Hizbullah

Israeli Prime Minister Benjamin Netanyahu warned Thursday that the influx of cash secured by Iran's nuclear deal with world powers would allow Tehran to further back armed groups in the region, including Lebanon's Hizbullah.

It would be important to "resist Iranian aggression in the region, which continues and might even accelerate given the amount of funds that they're going to get with the lifting of sanctions,” the Israeli PM told the World Economic Forum in Davos.

"And the strongest way to stop Iranian aggression is to bolster America's allies, first and foremost (of) which is Israel," he added.

Israel fought a devastating 33-day war against Hizbullah in 2006 that cost the lives of 1,200 people in Lebanon, mainly civilians, and 160 Israelis, mostly soldiers.

Israel is currently negotiating a new 10-year military aid package with Washington that it says will need to grow beyond the $3.1 billion yearly currently provided by the United States.

Netanyahu reiterated his argument that the nuclear deal that has seen sanctions lifted against its regional rival Iran would require Israel to increase spending to maintain its military edge.

Netanyahu, whose country is believed to be the sole nuclear power in the Middle East, though it has never declared it, strongly opposed the accord and labeled it a "historic mistake."

His outspoken criticism, including in an address to the U.S. Congress, led to troubled ties with the United States.

He has since scaled back his rhetoric and visited Washington in November as part of efforts to move past the rift.

A U.S. delegation is due in Israel next week as part of discussions over the new military package, with the current agreement due to expire in 2017, Israeli newspaper Haaretz reported.

Israel's total defense budget amounts to some $16 billion, excluding the U.S. aid.