The New York Times said on Wednesday that Israel believes the US aid is an integral part of the 1979 peace treaty with Egypt, and an essential condition for maintaining stability in the region.
Regarding the US decision, "Prime Minister Benjamin Netanyahu of Israel said he would speak only 'in general terms,' but made it clear that any withdrawal of aid was a concern."
In a radio interview last week Netanyahu explained that: "peace was premised on American aid to Egypt", which makes it a "most important consideration [for Israel]. And I'm sure that's taken under advisement in Washington."
The newspaper quoted an Israeli official speaking on the condition of anonymity because of the sensitivity of the issue, who warned that, "the implications of punitive cuts in Egypt's aid could go far beyond the issue of Israeli-Egyptian relations."