02:06 PM EDT, 09/05/2025 (MT Newswires) -- President Donald Trump is likely to reinterpret a 1987 arms control treaty, allowing the US to sell advanced military drones internationally and compete with Israeli, Turkish and Chinese manufacturers, Reuters reported Friday, citing a US official and four people familiar with the matter.

The new policy would allow Kratos Defense & Security Solutions, General Atomics and Anduril Industries to have their large drones treated as "Foreign Military Sales" by the State Department, Reuters reported, citing a US official.

The revised policy would open markets in Saudi Arabia, the United Arab Emirates and Eastern Europe nations to US companies, the report said.

The change marks the first phase of a broad overhaul of the US foreign military sales program, though the precise date to reveal the new drone policy has yet to be determined, the report said.

A US Department of State spokesperson declined to comment, Reuters said.

Kratos did not immediately respond to a request for comment from MT Newswires.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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