Defense Department leaders have elevated Israel's counterintelligence threat rating to its highest level amid credible reports that Israeli operatives eavesdropped on highly sensitive American negotiations with Iran. The Pentagon now regards a staunch ally as a top espionage risk, marking a dramatic reversal from the close strategic alignment President Trump and Prime Minister Benjamin Netanyahu enjoyed at the war's outset just months ago.

Bilateral ties had appeared solid last December when Trump publicly endorsed Netanyahu's objective to oust the Iranian government, and Washington and Jerusalem were largely marching in lockstep. Yet reported eavesdropping on Iran talks appears to have ruptured that trust, prompting American intelligence officials to treat Israeli collection efforts with the same wariness typically reserved for hostile adversaries rather than friendly governments.

Analysts say the upgraded assessment will severely strain defense and intelligence sharing between the two countries. Israel now sits in a rare category alongside traditional surveillance targets. The classification exposes that even deep, long-standing military partnerships remain vulnerable to penetration when allied governments perceive starkly divergent national interests over regional diplomatic strategy and mutual threat priorities.