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Gaza War Becomes Cash Surge for US Weapons Makers

An Israeli F-16 carrying air-to-air missiles and extra fuel tanks takes off from an air base (Israel Defense Forces)
An Israeli F-16 carrying air-to-air missiles and extra fuel tanks takes off from an air base (Israel Defense Forces)
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Gaza War Becomes Cash Surge for US Weapons Makers

An Israeli F-16 carrying air-to-air missiles and extra fuel tanks takes off from an air base (Israel Defense Forces)
An Israeli F-16 carrying air-to-air missiles and extra fuel tanks takes off from an air base (Israel Defense Forces)

Israel’s war in Gaza, which erupted in October 2023, has become one of the most profitable conflicts for major US defense contractors.

As Gaza was being devastated and hundreds of thousands of civilians faced death and starvation, weapons factories across several US states were running at full capacity to meet Israel’s expanding military demands, generating more than 32 billion dollars in sales in just two years, according to a Wall Street Journal analysis based on US State Department data.

After the Hamas attack on southern Israel on October 7, 2023, and the large-scale Israeli military campaign that followed, Washington moved quickly to open an unprecedented weapons pipeline that included precision-guided munitions, long-range missiles, fighter jets and field equipment.

While Israel typically receives around 3.3 billion dollars in annual military assistance, that figure doubled in 2024 to 6.8 billion dollars in direct funding, not including non-cash support such as logistics, training and intelligence coordination.

A US State Department spokesperson said the Trump administration remains committed to Israel’s right to defend itself, adding that Washington is currently leading a regional effort to end the war through lasting security arrangements.

But despite talk of a “possible end” to the conflict, Pentagon data show that weapons production lines in US factories have not slowed and that supply contracts run through 2029, meaning arms deliveries to Israel will continue even after the fighting stops.

Who is benefiting most?

Boeing sits at the top of the list of beneficiaries after securing a 18.8 billion dollar deal to sell upgraded F-15 fighter jets to Israel, with delivery expected in four years.

The company also won an additional 7.9 billion dollars in contracts to supply Tel Aviv with guided bombs and associated weapons systems. These deals alone represent a major leap compared with Israel’s previous commitments to Boeing, which totaled less than 10 billion dollars over an entire decade.

Northrop Grumman, Lockheed Martin and General Dynamics secured specialized contracts for fighter jet spare parts, precision missiles and 120-millimeter tank rounds used in Merkava tanks.

Caterpillar benefited from soaring demand for its armored D9 bulldozers, widely deployed by the Israeli military to destroy homes and infrastructure in the enclave.

According to the US Defense Security Cooperation Agency, most of the deals are concentrated in aerial munitions and attack aircraft, while ground systems such as tanks and armored vehicles represent a far smaller share of total sales.

War as an economic opportunity

The conflict has not only been a military campaign, it also served as an economic boost for the US defense sector, which in recent years struggled with supply chain disruptions and labor strikes.

Boeing said in its 2024 annual report that its defense division saw strong demand from governments prioritizing security and defense technology amid rising threats.

Lockheed Martin reported a 13 percent increase in missile division revenues, reaching 12.7 billion dollars in a single year.

Oshkosh, which produces tactical military vehicles, said Israel’s orders saved a production line that was close to shutting down last year. Italy’s Leonardo Group, whose US unit sells military trailers to Israel, said in its latest financial report that the continuation of the conflicts in Ukraine and Israel ensures stable international sales for 2025.

The cost of war and who pays the price

Although the billions flowing through arms deals reflect a boom for the US defense industry, the humanitarian and political dimensions of the conflict have fueled debate in the United States and abroad.

The war has killed more than 68,000 people, including about 18,000 children, according to the Gaza Health Ministry. Israel has not released any official figures on the number of Hamas fighters killed.

As Washington funds a significant share of these sales with US taxpayer money, some Western financial institutions have started taking protest measures.

Three Norwegian funds withdrew investments from companies such as Caterpillar, Oshkosh and Palantir over the use of their products in Gaza. The Dutch pension fund sold its 448 million dollar stake in Caterpillar for the same reasons.

In Europe, Germany announced in August 2025 a halt to all arms export licenses to Israel for use in Gaza. US technology companies also faced internal pressure, prompting Microsoft to restrict the Israeli Defense Ministry’s access to some of its cloud services.

Artificial intelligence on the battlefield

Alongside conventional weapons, the war created a wider arena for cooperation on artificial intelligence and digital surveillance. Palantir, owned by conservative billionaire Peter Thiel, entered a partnership with the Israeli Defense Ministry in early 2024. After criticism that its tools were being used in airstrikes, CEO Alex Karp responded by saying that most of those killed “were terrorists,” in his words.

Israel also signed pre-war agreements with Google, Amazon and Microsoft for advanced cloud computing services, and all three companies have faced growing employee protests calling for an end to military cooperation.

In an unusual twist, some of the same US firms supplying Israel with weapons also participate in humanitarian relief programs for Gaza.

The US State Department allocated 30 million dollars to the Gaza Humanitarian Foundation, overseen by former Trump adviser Johnnie Moore, to coordinate aid distribution in the enclave.

The foundation hired American security contractors to protect its operations amid chaos and allegations of poor organization.

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Arab World

Lives Being Upended on Massive Scale in Lebanon, Says UN Refugee Agency

A boy looks on while lying under a blanket alongside family belongings in a makeshift encampment along the waterfront in Beirut on March 10, 2026, as civilians who fled the city's southern suburbs due to Israeli bombardment remain displaced. (AFP)
A boy looks on while lying under a blanket alongside family belongings in a makeshift encampment along the waterfront in Beirut on March 10, 2026, as civilians who fled the city's southern suburbs due to Israeli bombardment remain displaced. (AFP)
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Lives Being Upended on Massive Scale in Lebanon, Says UN Refugee Agency

A boy looks on while lying under a blanket alongside family belongings in a makeshift encampment along the waterfront in Beirut on March 10, 2026, as civilians who fled the city's southern suburbs due to Israeli bombardment remain displaced. (AFP)
A boy looks on while lying under a blanket alongside family belongings in a makeshift encampment along the waterfront in Beirut on March 10, 2026, as civilians who fled the city's southern suburbs due to Israeli bombardment remain displaced. (AFP)

‌Lives have been upended on a massive scale in Lebanon amid a wider conflict in the Middle East, with more than 667,000 people now registered as displaced within the country - an increase of ‌100,000 in ‌just one day - the ‌UN ⁠refugee agency said ⁠on Tuesday.

Lebanon was dragged into the US-Israeli war on Iran this month when Iran-backed Hezbollah launched rockets ⁠and drones into Israel, which ‌has ‌responded with heavy bombardment across the ‌country.

Some 120,000 people are ‌staying in government designated shelters, while others are still looking for somewhere to stay, the ‌UNHCR said, citing government figures.

"Many others are ⁠staying ⁠with relatives or friends or still searching for accommodation, and we see cars lined along the street with people sleeping in them and also on the sidewalks," said Karolina Lindholm Billing, UNHCR representative in Lebanon.

Arab World

Syrian Interior Ministry Airs Confessions of ‘Saraya al-Jawad’ Members

The February operation targeted hideouts in the villages of Beit Alouni and Basniya in Latakia province. (SANA)
The February operation targeted hideouts in the villages of Beit Alouni and Basniya in Latakia province. (SANA)
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Syrian Interior Ministry Airs Confessions of ‘Saraya al-Jawad’ Members

The February operation targeted hideouts in the villages of Beit Alouni and Basniya in Latakia province. (SANA)
The February operation targeted hideouts in the villages of Beit Alouni and Basniya in Latakia province. (SANA)

The Syrian Interior Ministry released a video showing confessions from members of the "Saraya al-Jawad" armed group, nearly two weeks after announcing a raid on one of its main strongholds in the countryside of Jableh in the Latakia province.

According to the ministry, the February 23 operation targeted hideouts in the villages of Beit Alouni and Basniya in Latakia province. The raid killed the group’s coastal leader Bashar Abdullah Abu Ruqayya and two other commanders, and led to the arrest of six members.

The video released Monday includes footage from the twin operation carried out by the Interior Ministry’s Internal Security Directorate.

Authorities said the raid followed several days of surveillance and resulted in the destruction of a weapons depot and explosives storage site belonging to the group.

One member of the Syrian special task forces was killed and another was lightly wounded during the operation.

In the recorded confessions, detainees said they took part in attacks along the Syrian coast in March 2025. One suspect admitted to ambushing a General Security patrol and killing one officer during a clash.

The confessions also described the establishment of an operations room in a residential house that doubled as an arms depot. According to the detainees, the group received financial support from businessmen Ayman Jaber and Mohammad Jaber, while supplies were smuggled in from Lebanon.

Mohammad Jaber, a businessman close to the former government of Bashar al-Assad and a commander in the Desert Hawks militia founded by his brother Ayman, previously appeared in a television interview acknowledging his role in organizing attacks by pro-regime remnants along the Syrian coast on March 6, 2025.

Documents and recordings obtained by Al Jazeera’s investigative program Al-Mutahari suggested that senior figures linked to the former government sought to form armed groups to carry out attacks on Syrian security forces and the army.

The Interior Ministry said it is pursuing members of those networks and attempting to curb their activities.

Saraya al-Jawad has been active in Syria’s coastal region — particularly in Latakia, Jableh and Tartus — since August 2025, when activists circulated a video showing a car bomb targeting a General Security vehicle in rural Jableh.

Earlier this month, security forces in Tartus also arrested three suspects — Ali Zuhair Idris, Ammar Madin Youssef and Mousa Mazhar Mia — accused of planning attacks targeting the province’s security and civilians.

Officials said intelligence showed the group had received explosives training abroad before infiltrating back into Syria.

Arab World

Hezbollah Pressure on Military Court Undermines Lebanon’s Weapons Ban

Blankets are distributed at a school converted into a shelter in Beirut, where a banner displaying images of leaders and members of Hezbollah can be seen (EPA). 
Blankets are distributed at a school converted into a shelter in Beirut, where a banner displaying images of leaders and members of Hezbollah can be seen (EPA). 
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Hezbollah Pressure on Military Court Undermines Lebanon’s Weapons Ban

Blankets are distributed at a school converted into a shelter in Beirut, where a banner displaying images of leaders and members of Hezbollah can be seen (EPA). 
Blankets are distributed at a school converted into a shelter in Beirut, where a banner displaying images of leaders and members of Hezbollah can be seen (EPA). 

Lebanon’s government decision to prohibit any military or security activity by Hezbollah has yet to translate into meaningful enforcement.

Hezbollah has continued to escalate its military operations, launching rockets and drones toward Israeli territory, while signs of deteriorating security have appeared inside Lebanon, particularly among displaced residents who have fled southern Lebanon and Beirut’s southern suburbs.

Security agencies have struggled to identify those responsible for launching rockets toward Israel. However, Lebanese forces recently recorded a notable development with the arrest of around 30 individuals affiliated with or supportive of Hezbollah.

The detainees were apprehended while fleeing alongside civilians from southern areas and the southern suburbs of Beirut after being found carrying individual weapons, including assault rifles, pistols and grenades.

The arrests appeared to signal a tentative shift in how Lebanon’s security and judicial institutions handle the issue of illegal weapons. Yet the move quickly ran up against what officials say is Hezbollah’s continuing influence over judicial decisions.

Last week, the military court tried three Hezbollah members detained days earlier. The court imposed a fine of 900,000 Lebanese pounds —about $10 — on each of them for possessing unlicensed military weapons and waived any prison sentence.

The ruling diverges sharply from typical sentences in similar cases, where possession or transport of unlicensed weapons usually carries at least a one-month prison term.

Judicial sources say the unusually lenient sentence reflects pressure exerted by Hezbollah on the military court to secure the release of its detained members.

According to the sources, the group sought their release last Thursday and pushed for their trial to be held the following day. The military prosecutor’s office objected, resulting in the hearing being postponed until Monday.

The verdict also drew criticism from the government commissioner to the military court, Judge Claude Ghanem, who promptly appealed the ruling before the Military Court of Cassation, requesting tougher penalties.

A judicial source told Asharq Al-Awsat that the ruling was “extremely lenient and failed to account for all the legal provisions under which the suspects were charged.” The source added that the commissioner had received preliminary investigation files concerning four additional detainees and was preparing to file charges against them in the coming hours while seeking stricter sentences.

Only hours after the verdict was issued, Lebanese Justice Minister Adel Nassar ordered that the civilian adviser to the military tribunal, Judge Abbas Jaha, be referred to the Judicial Inspection Authority for investigation.

A Justice Ministry source told Asharq Al-Awsat that the referral stemmed from “the circumstances surrounding the trial and his failure to object to this suspicious ruling.” The source noted that another member of the court panel, a military officer, had opposed the decision while Jaha approved it without reservation.

Weapons and rising tensions in host communities

Legally, the arrest of armed Hezbollah members represents a direct application of the government decision banning any military or security activity by the group. In principle, the ruling applies to anyone carrying weapons outside state authority and places them under threat of prosecution.

The more pressing challenge, however, lies in dealing with armed individuals among displaced populations.

Several neighborhoods in Beirut, including Hamra, Ras Beirut, Sakiat al-Janzir and Ain al-Remmaneh, as well as the towns of Aramoun and Kfarshima in Mount Lebanon, have witnessed repeated incidents involving gunfire, displays of weapons and confrontations with local residents.

Videos circulating on social media show armed men threatening residents, including footage recorded Sunday in Aramoun.

These incidents have heightened anxiety among host communities already grappling with mounting social and economic pressures.

Some residents say the security measures in place remain “below the required level,” arguing that the absence of deterrent action risks encouraging further incidents and creating the impression that the law is applied hesitantly when those involved are linked to Hezbollah.

A Lebanese security source, however, insisted that authorities treat all security incidents seriously. Delays in reaching certain locations, the source said, often result from limited personnel and the difficulty of maintaining coverage across all displacement areas.

Security forces maintain a near-permanent presence at the entrances of schools and facilities housing displaced people, the source added, while most incidents occur in nearby streets and neighborhoods. Patrols respond immediately to reports of gunfire or clashes, detaining suspects or pursuing them if they leave the scene.

Nevertheless, the official acknowledged that the continued incidents could lead to broader friction between displaced populations and local residents — particularly in densely populated areas — at a time when host communities are already under severe economic strain and displacement is expected to continue for months.