US scraps military drills with Egypt, but not aid

President Barack Obama scrapped plans for joint American-Egyptian military exercises, announcing the first concrete U.S. reaction to the spiralling violence in and around Cairo but stopping well short of withholding $1.3 billion in annual American military aid.

The measured response on Thursday underscored the Obama administration’s concern that revoking financial support could further destabilize Egypt, the Arab world’s most populous country and an important U.S. ally in a combustible region. And it was unclear whether the cancellation of the military exercises, known as Bright Star, would have any impact in stemming the violence that threatens the interim Egyptian government’s promises of a political transition following the ouster of President Mohamed Morsy.