Analysis of the $8 billion arms sale between the USA and Israel, and its political, economic and humanitarian impacts.
The Biden administration has approved an $8 billion arms sale to Israel. The contract includes guided missiles, munitions and tactical weapons. The decision comes against a backdrop of protracted conflict between Israel and Gaza, and is intended to strengthen the strategic alliance between the two countries. However, it raises questions about the humanitarian implications and geopolitical tensions in the region.
A strategic transaction for Israel and the United States
The $8 billion arms sale includes several strategic pieces of equipment:
- 6.75 billion in guided missiles and precision bombs.
- 300 million for 155 mm artillery shells.
- 600 million for Hellfire missiles.
- 300 million dollars for Amraam air-to-air missiles.
Some of the equipment will be sourced directly from US stocks, while others will require a production lead time of over a year. This transaction is part of a bilateral relationship that sees the United States providing $3.8 billion in annual military aid to Israel, plus one-off assistance such as the $26 billion granted in April 2024.
Economic and industrial implications for the USA
This arms sale will benefit companies such as Lockheed Martin, Raytheon and Boeing. These groups will step up production to meet the Israeli order, boosting employment in the defense sector. In 2023, the US arms industry generated more than $500 billion in revenues, contributing around 3% of US GDP. However, this dependence on arms production poses challenges in terms of budget priorities.
Geopolitical context and humanitarian consequences
Since the Hamas attack on October 7, 2023, which caused the deaths of 1,200 people in Israel, and the Israeli response which resulted in over 45,000 deaths in Gaza, this conflict has taken on alarming proportions. Although Washington insists on improving humanitarian aid, NGOs point to insufficient deliveries to Gaza. Moreover, the deal could exacerbate tensions with other regional players such as Iran, reinforcing conflict dynamics.
Reactions in the US Congress
The sale has been notified to Congress for approval. However, internal opposition persists. In 2023, some Democrats tried unsuccessfully to block a $20 billion arms sale to Israel. Congress will also have to consider the political and humanitarian implications of the deal.
This $8 billion contract illustrates the strategic alliance between Israel and the United States, while raising economic, political and ethical challenges. It reflects Washington’s strategic priorities in a volatile region, but also the growing tension between military support and humanitarian concerns.
War Wings Daily is an independant magazine.