Analysis: Netanyahu now faced with a dilemma
By Alistair Bunkall, Middle East correspondent, in Jerusalem
We knew he was thinking it, but now it has been said out loud.
Although we can assume the US would have told Israel in private of its decision to withhold weapons in the event of a "major" Rafah invasion, to hear Joe Biden lay it out so publicly has shaken Israelis.
Some see it as treacherous, an outrageous move by the country's closest ally; others believe it is the predictable consequence of Benjamin Netanyahu's failure to heed American advice and warnings over many months.
Mr Netanyahu, who is yet to comment, is now faced with a dilemma: defy Mr Biden and invade Rafah anyway, or back down and look weak in the face of Israel's enemies: Hamas, Hezbollah and Iran.
"Bibi will say one thing and do the complete opposite," one seasoned Israeli political journalist told me earlier.
"Biden's mistake was saying it out loud, he doesn't understand the Middle East," another messaged.
"Do it, fine, but don't brag about it."
US diplomats I've spoken to in Jerusalem this morning, though, say the administration has repeatedly tried to work with Israel, over seven months, and with little to show for it.
They've gently cajoled Israel to let more aid into Gaza, to design a "day-after" plan, to limit civilian casualties and to deliver a humanitarian plan for Rafah - some of these things have happened very slowly, others not at all.
The US is clearly fed up and out of patience.
The immediate concern is how Mr Biden's announcement will affect negotiations for a ceasefire that are ongoing in Cairo.
The CIA director has just flown back to the Egyptian capital after a short visit to Tel Aviv and work is under way to close the gaps.
Logically, Hamas will now be unlikely to offer any further compromises if they think the threat of an invasion of Rafah has gone away.
So does Mr Netanyahu try to convince the right-wing hawks in his government that his hands have been tied and that he has no other choice but to accept the deal that is on the table while he buys time for future action?
Or does he dial down the temperature, keep the negotiations bubbling but order the IDF to continue with "limited" actions on the edges of Rafah, all the while creeping further towards the centre without alarming the White House? Achieving some military objectives without stepping over the line.
There is a third option: go into Rafah hard, and soon. Use the considerable arsenal and firepower that the IDF has, make some ground in a limited timeframe, then get out and soak up the wrath of Washington.
That option might deliver a short-term victory but would outrage the US administration and could put at risk options for future Israeli operations, for example in Lebanon.
There have been many pivotal moments during this seven-month war, and this is another.