Donna Leinwand Leger

USA TODAY

DAVOS, Switzerland — The United States and Israel are finalizing details of a 10-year military aid package that likely will be larger than the $3.1 billion U.S. package Israel received this year, Israeli Prime Minister Benjamin Netanyahu said Thursday at the World Economic Forum.

A military boost from the U.S. is critical following the nuclear deal with Iran that frees up tens of billions for the Islamic Republic, Netanyahu said. His government had lobbied unrelentingly against the deal, which lifts international sanctions in return for curbs on Iran's nuclear program, and Israel is now on edge as it grapples with the reality of a newly empowered Iran. Netanyahu had argued that any deal would put Israel's security at risk.

"What is clear is that Iran will now have more resources to divert to terrorism and its aggression in the region and around the world, and Israel is prepared to deal with any threat," Netanyahu told his cabinet earlier this week.

Netanyahu also said instability from the civil war in neighboring Syria could allow Iran or Islamic State to launch attacks into Israel.

"We don’t want Iran to have a warfront to use against us," he told the audience in Davos.

Iran, which has insisted its nuclear program is for peaceful purposes only, was certified by U.N. inspectors last weekend to have met terms of the agreement with world powers that involve dismantling nuclear equipment. That cleared the way for a lifting of international sanctions and the release of more than $100 billion in frozen assets held in foreign banks.

About half of those frozen funds must go to pay off outstanding debts. Israel is worried that the remainder will be spent on weapons and support for terrorist groups, although Iran has said it needs the funds to rebuild a domestic economy long crippled by the sanctions. After the sanctions were lifted, it announced a deal to purchase commercial airplanes from European-based Airbus.

International sanctions against Iran lifted in landmark nuke deal

Netanyahu said support for the military aid package is "a sign of how strong the American Israeli alliance is."

"We have our disagreements. We always do," Netanyahu said. "This partnership is rock solid and will remain so."

Netanyahu, who is here for the annual gathering of world leaders and business elites, met Thursday with Vice President Biden. The State Department said Biden "reaffirmed the unshakable U.S. commitment to Israel's security, and the two leaders discussed ways to further deepen security cooperation to confront common regional threats."

As Israel and the U.S. split over the Iran deal, which President Obama spearheaded, tension rose between the allies. The latest irritant came Monday, when U.S. Ambassador to Israel Dan Shapiro criticized Israeli settlements on disputed West Bank land also claimed by Palestinians — as well as vigilantism — in a speech at a security conference in Tel Aviv.

"At times it seems Israel has two standards of adherence to rule of law in the West Bank — one for Israelis and one for Palestinians," Shapiro said.

The speech came under sharp attack in Israel, which has weathered a four-month spate of random attacks by Palestinians, mostly with knives. In the most recent violence, Palestinians killed an Israeli mother of six and wounded a pregnant Israeli woman in West Bank settlements.

The Palestinian attacks on Israelis have killed more than 25 people, while 146 Palestinians have been killed by Israeli fire, including about 100 Israel alleged were attackers, according to the Associated Press.

Jerusalem's new normal: Arabs and Jews on edge amid near-daily attacks

On Monday, the State Department called for "affirmative steps to restore calm, reduce tensions and bring an immediate end to the violence."