The White House called off Austere Challenge 12, the biggest joint war game the US and Israel had planned to stage.
The exercise was cancelled because of a comment by Israeli Deputy Prime Minister Moshe Yaalon in an a radio interview.
Yaalon said the United States was hesitant over sanctions against Iran's central bank and oil for fear of a spike in oil prices and Israel must be ready to defend itself.
Rightrdia has already noticed a rise of oil prices in the Tampa Bay area.
DeBKAfile reported that both president Barack Obama and Secretary of State Hillary Clinton were outraged by the assassination last Wednesday, Jan. 11, of the nuclear scientist Prof. Mostafa Ahmadi-Roshan.
The US had been negotiating a back channel with Iran to try and avoid a confrontation that would likely cause a regional middle east war.
The US denies it was involved with the assassination. The confrontation between the US and Israel suggests that Mossad has been behind the assassination of the five Iranian nuclear scientists.
There are also reports that Israel may launch a false flag operation to attack a US ship in the Persian Gulf to provoke the US to attack Iran.
Nine thousand troops now remain in Israel and the US has 15000 troops in Kuwait. Some troops in Iran were also redeployed from Iraq to Jordan near its border with Syria. Many of the troops were American units came from the big Iraqi Ain al-Assad air base in the western province of Al Anbar opposite the Jordanian border.
Some of the troops were special forces and another report suggested the troops spoke many different languages, implying NATO troops or intelligence linguists.
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