Jordan King Abdullah US President Barack Obama
Jordan's King Abdullah met with US President Barack Obama at the White HouseReuters

US President Barack Obama has told Jordan's King Abdullah the US would increase financial aid and provide more loan guarantees to the Middle Eastern country.

One of the US's closest allies in the region, Jordan's economy has suffered from the burden of hosting hundreds of thousands of refugees form the Syrian civil war.

The two leaders discussed the ongoing negotiations with Iran over its nuclear programme, as well as regional security issues.

Abdullah visited the White House with tensions high in the region, amid the rise of militant groups aligned with Islamic State.

The group controls territory in parts of Iraq and Syria where it has imposed an ultra-conservative interpretation of Islamic law. It has previously advanced to within striking distance of the Jordanian border and the group poses the biggest security threat to Jordan's ruling monarchy.

Meanwhile, Jordan's economy has struggled to absorb the massive influx of mostly women and children from its northern neighbour. Syrian refugees have weighed on the country's infrastructure, including education and healthcare services.

Their presence has also disrupted the labour market, where they are willing to work for lower wages than Jordanians and other economic migrants, breeding resentment in some communities.

While Jordan has received considerable sums of financial assistance from allies and international organisations, Amman says it needs more money to cope with strain on its public and private infrastructure.