Vance just suggested Israel may not be on board with a US-Iran peace deal as he was grilled over bombshell intelligence reports claiming Benjamin Netanyahu's spy agencies have been eavesdropping on American negotiators. US intelligence officials are alarmed by Israel's eavesdropping on American diplomats negotiating with Iran.

The Pentagon now ranks Israel as a bigger counterintelligence threat than some of America's enemies, according to The New York Times.