Jack Lew, then treasury secretary and now the nominee to be US ambassador to Israel, at the State Department in June 2015
Jack Lew, then treasury secretary and now the nominee to be US ambassador to Israel, at the State Department in June 2015 AFP

US President Joe Biden on Tuesday nominated former treasury secretary Jack Lew as ambassador to Israel, tapping a veteran political player with close ties to the Jewish state at a turbulent time between the allies.

Lew, an Orthodox Jew who observes the weekly sabbath, will play a key role in managing the relationship as Biden attempts to broker a potentially historic deal for Saudi Arabia to recognize Israel.

The nomination comes after a spike in tensions with Biden openly criticizing an overhaul of the judiciary by Prime Minister Benjamin Netanyahu, in what critics say is a threat to democracy by the most right-wing government in Israel's history.

Lew will need confirmation from the Senate, where Biden's Democratic Party retains control but Republicans ahead of the 2024 US election could fight against the nomination.

In a formal statement, the White House cited the "distinguished career in public service" of Lew, who has served in successive Democratic administrations.

Under Barack Obama, Lew -- a trained lawyer -- served as treasury secretary and earlier as White House chief of staff, director of the Office of Management and Budget and as a deputy secretary of state to Hillary Clinton.

David Makovsky, a distinguished fellow at the Washington Institute for Near East Policy, said that Lew, while more of a budgetary than foreign policy expert, would be the first former cabinet secretary to become ambassador to Israel.

"Having him there is a signal by the president that he greatly values the bilateral relationship and that he wants someone of stature," said Makovsky, a longtime friend of Lew.

"It's going to come at a difficult time," he said.

Lew would succeed Thomas Nides, another veteran Democratic political operative who made headlines with his unusually blunt language on Netanyahu's judicial reforms.

Nides cited personal reasons as he left the position. His wife is a senior executive at CNN who remained in the United States during his tenure.

Brett McGurk, the coordinator for Middle East policy at the White House, is visiting the region in a new bid to advance a deal between Israel and Saudi Arabia, which is seeking military and nuclear commitments from the United States, although official sources caution that no agreement is imminent.

Saudi recognition of Israel would be a diplomatic game-changer and arguably top the accords negotiated by Donald Trump's administration in which the United Arab Emirates, Bahrain and Morocco normalized with the Jewish state.

Biden has hoped to minimize tensions with Netanyahu, who is popular among Republicans and had a toxic relationship with Obama, but has also kept him at arm's length, with a visit expected only later this year.

The Biden administration has criticized the growth of Israeli settlements in the West Bank and returned to a pre-Trump policy of not allowing US funding for cooperation with universities on occupied territory.

The education move has set off furious denunciations by Republicans, who have vowed to use their power in Congress to reverse it.

Biden, however, has maintained one of Trump's key decisions of moving the US embassy from Tel Aviv to Jerusalem, which Israel considers its eternal capital but Palestinians also want as the capital of an elusive future state.

US president Barack Obama shakes hands with Jack Lew after nominating him for Treasury Secretary at the White House on January 10, 2013
US president Barack Obama shakes hands with Jack Lew after nominating him for Treasury Secretary at the White House on January 10, 2013 AFP