Business of war: How Israel’s arms industry turns genocide into global influence
Arrow anti-ballistic missile launch
The Palestine Chronicle reports on 2 July 2026:
Key Takeaways
- Israel has become the world’s seventh-largest arms exporter, with defense exports reaching a record $19.2 billion in 2025.
- Experts say arms sales create long-term political leverage, making governments less likely to challenge Israeli policies.
- Analysts argue US military funding and technology cooperation remain central to Israel’s expanding global defense industry.
Record Arms Exports
Despite growing international criticism of Israel’s genocidal war on Gaza, Lebanon and the occupied West Bank, governments around the world continue purchasing Israeli weapons, helping fuel a record-breaking defense industry that analysts say has become a powerful instrument of diplomatic influence.
In an analysis published by Responsible Statecraft, experts argue that Israel increasingly uses arms exports not merely as commercial transactions but as long-term strategic tools that bind purchasing countries to Israeli security interests while reducing their willingness to challenge its regional policies.
The report also highlights the central role played by the United States in financing and strengthening Israel’s defense industry through decades of military assistance and technological cooperation.
According to the analysis, Israel’s defense sector has expanded rapidly since October 2023. The number of Israeli defense startups nearly doubled, rising from 160 in July 2024 to 312 by April 2025. At the same time, Israel’s arms exports reached unprecedented levels.
Citing data from the Stockholm International Peace Research Institute (SIPRI), Responsible Statecraft reports that Israel ranked as the world’s seventh-largest arms exporter between 2021 and 2025, surpassing the United Kingdom.