Earlier quoted context omitted.
The US 100% spies on Israel, and Israel often has the most amount of foreign spies in DC/SF outside of China and Russia.
I don't know about the US spying on Israel, but Israel and the UAE actively spy on the US, and this arrangement is pretty much allowed. I do know that US embassies in both places "monitor" their host countries, which is significantly different from spying and intercepting comms.
I don't think what you are saying is even technically possible ("we spy on everyone except this small country"). Everyone spies on everyone.