The ongoing conflict between Israel and Gaza has proven to be highly profitable for American defense corporations, with Washington approving more than $32 billion in weapons, ammunition, and military equipment sales to Israel since hostilities began in October 2023. This substantial arms pipeline has generated significant business for major US companies including Boeing, Northrop Grumman, Lockheed Martin, and Caterpillar.
Unprecedented Military Financing Surge
According to a Wall Street Journal analysis of State Department disclosures, US weapons sales to Israel have surged dramatically following the October 7, 2023 attack by Hamas that killed approximately 1,200 people and resulted in 251 hostages. Israel's subsequent military invasion of Gaza has led to more than 68,000 casualties, including over 18,000 children, according to Gaza health authorities.
The conflict has fundamentally transformed US military assistance to Israel. Annual foreign military financing for Israel normally stands at $3.3 billion, but this figure more than doubled last year to reach $6.8 billion. This amount doesn't include noncash forms of assistance, meaning American taxpayers are footing much of the bill for these defense contracts.
Major Defense Contracts and Corporate Beneficiaries
Boeing has emerged as the biggest beneficiary among American companies, securing approval for an $18.8 billion sale of F-15 strike fighters to Israel last year, with deliveries scheduled to begin in 2029. Additionally, various partnerships led by Boeing received approval for $7.9 billion in guided bombs and associated kits. This represents a substantial increase compared to the $10 billion Israel pledged to Boeing in 2018 for purchases over the following decade.
Other defense giants have also secured significant approved weapons sales:
- Northrop Grumman: Provides spare parts for jet fighters
- Lockheed Martin: Supplies high-powered precision missiles
- General Dynamics: Provides 120mm shells for Israel's Merkava tanks
The largest defense sales approved by Washington involve jet fighters and airborne-guided bombs, reflecting the crucial role of aerial bombings in the conflict. Contracts related to ground operations—including bulldozers, tank shells, and transport vehicles—represent much smaller amounts.
Backlash and Regional Implications
Despite the financial benefits, several companies have faced significant backlash from investors and employees over their sales to the Israeli military. Three Norwegian investment funds sold their stakes in Oshkosh, Palantir Technologies, Caterpillar, and Thyssenkrupp due to concerns about how their products are being used in Gaza.
In a notable move, Dutch pension fund ABP—the largest in the Netherlands with over $400 billion under management—sold its $448 million stake in Caterpillar, specifically citing concerns about the Gaza conflict. Germany has also announced it will no longer approve weapons exports to Israel for use in the Gaza Strip until further notice.
The conflict has also impacted technology companies. Microsoft disabled the Israeli Defense Ministry's access to some cloud services in response to staff protests. Before the war began, Microsoft and a partnership between Google and Amazon had secured deals to provide artificial-intelligence and cloud-computing services to the Israeli military.
Palantir, co-founded by Trump ally Peter Thiel, entered into a partnership with the Israeli Defense Ministry in January 2024. At a May 2025 conference, Palantir CEO Alex Karp responded to accusations that Israel used Palantir's technology to kill Palestinians by stating that those killed were "mostly terrorists."
Humanitarian Response and Future Outlook
American companies have also found business opportunities in responding to the humanitarian crisis sparked by the war. The US State Department allocated $30 million to the Gaza Humanitarian Foundation, led by former Trump adviser Johnnie Moore, which hired American contractors Safe Reach Solutions and UG Solutions to provide security for aid distribution efforts.
Even if the current truce develops into a lasting peace, defense contracts approved by Washington are typically planned years ahead, and Israel will likely continue to face threats from regional adversaries including Iran and militants in Yemen and Lebanon. The Trump administration is continuing its support, seeking congressional approval to sell nearly $6 billion in additional weapons to Israel, including a $3.8 billion deal for Boeing's Apache helicopters that would nearly double Israel's current fleet.
For Boeing, which has contended with two years of supply disruptions and strikes, international arms sales have provided a rare bright spot. The company noted in its 2024 earnings filing that its defense subsidiary received a boost from "solid demand as governments prioritize security, defense technology and global cooperation given evolving threats."
