The U.S.-Iran deal “undercut” Benjamin Netanyahu's position on Iran and exposed the limits of his influence with a U.S. president widely seen as pro-Israel, according to a report published on Thursday.

Iran Deal A Setback For Israel?

Israeli analyst Danny Citrinowicz deemed the agreement a strategic “catastrophe” that ended up “legitimizing” the Iranian regime Israel wanted to overthrow, Reuters reported.

The 14-point deal includes U.S. commitments to terminate all sanctions on Iran, including oil exports, a minimum $300 billion aid and reconstruction package, lifting the naval blockade of Iranian ports, and the two countries respecting each other’s sovereignty.

And while Iran reaffirmed that it will not build or acquire nuclear weapons, details on material removal are pending further talks.

Vance Warns Israeli Critics

Citrinowicz said the deal addresses none of Israel’s “core demands” and also restricts its operations in Lebanon, Reuters quoted him as saying.

Notably, Vice President JD Vance told reporters that the deal is a “win-win” for the U.S. He also warned critics in Israel, especially cabinet members, against personally attacking President Donald Trump—the only “powerful ally” Israel has anywhere left in the world.

Is Netanyahu In Trouble?

The deal has also “undercut” Israel’s Prime Minister Netanyahu’s position on Iran, according to the report. Trump has voiced frustration over Netanyahu's actions in Lebanon and allegedly called him "crazy" in a heated, expletive-filled phone call earlier this month.

Netanyahu has announced his re-election bid later this year, but prediction markets are skeptical of his chances of returning to power.

Polygon (CRYPTO: POL)-based Polymarket priced in a 37% chance of Netanyahu becoming Prime Minister once again after the October elections, with 39% odds in favor of Gadi Eisenkot, the former chief of staff of the Israel Defense Forces, and currently a leader of Yashar Party.

The vote will be Israel’s first national election since the October 2023 Hamas attack, the country’s worst security failure, which triggered Israel’s assault on the Gaza Strip. A survey by the Jerusalem-based Israel Democracy Institute found that 61% of Israelis believe Netanyahu should not run again.

Photo Courtesy: noamgalai on Shutterstock.com