Benjamin Netanyahu is moving to wean Israel off American financial support, just as Donald Trump's Iran peace proposal unravels and oil prices surge. 

Netanyahu sat down with CBS News anchor Major Garrett for an interview this weekend, where he was pressed on the financial support Israel receives from the US.

'Do you believe it's time for the state of Israel to reexamine and possibly reset its financial relationship to the United States?' Garrett asked, to which Netanyahu responded, 'Absolutely.'

'And I've said this to President Trump. I've said it in -- to our own people ... I want to draw down to zero the American financial support, the financial component of the military cooperation that we have.'

'Because we receive -- we receive $3.8 billion a year. And  I think that it's time that we weaned ourselves from the remaining -- military support.' the Israeli prime minister added.

Netanyahu went on the say he wants to begin the drawdown immediately rather than wait for the next Congress, phasing it in over the next decade, a push that comes American support for Israel declines. 

His comments come as Iran has issued a stark warning to the US after Trump earlier rejected their 'totally unacceptable' peace proposal. With no peace deal in sight to end the Strait of Hormuz standoff, global oil prices have skyrocketed, pushing Brent crude futures to around $104 a barrel.

Iranian President Masoud Pezeshkian reacted to Trump's rejection but stating, 'We will never bow our heads before the enemy, and if talk of dialogue or negotiation arises, it does not mean surrender or retreat.'