Israel’s war in Gaza causing losses worth billions as countries cancel arms and defence deals with Tel Aviv

New Delhi: Amidst international criticism of Israel over the war in Gaza, the Israeli defence industry is facing a crisis. Israel’s closest allies are terminating defence agreements with Israel. Meanwhile, Spain has cancelled another arms deal with Israel’s Rafael Advanced Defence Systems.

Deals worth $654 million cancelled

According to Israeli media reports, the cancellation of this deal brings the value of suspended contracts with Israeli companies in recent months to approximately $654 million. The halt on new deals worth billions of dollars also threatens long-term exports.

Spain cancels big defence deal

Israeli defence industry officials fear that other countries, seeking to pressure Israel to end the war in Gaza, may also cancel deals. The Spanish Defence Ministry announced last week that it had cancelled a planned purchase of dozens of Litening 5 targeting pods from Rafael. It guides aerial bombs from a distance of up to 100 km. This deal was valued at over $218 million.

Another $763 million deal cancelled

In addition, another $763 million deal for the Pulse rocket system between Israel’s Elbit Systems and two Spanish firms has been cancelled. Elbit Systems’ share of this deal was approximately $150 million. Earlier this year, Spain cancelled an ammunition order worth several million dollars with an Elbit subsidiary.

Spain imposes arms embargo

Spanish Prime Minister Pedro Sánchez has taken a tough stance against Israel over the Gaza War. In recent weeks, Spain has imposed an arms embargo, preventing Israeli supply ships from docking at Spanish ports. Spain has also imposed restrictions on the export of raw materials, forcing Israeli firms to seek alternatives.

HIGHLIGHTS

• Israel’s war in Gaza causes it losses worth billions.
• Several countries have cancelled arms and defence deals with Tel Aviv.
• The Israeli defence industry is facing a crisis.
• Israel’s closest allies are terminating defence agreements with Israel.

According to Israeli media reports, the cancellation of this deal brings the value of suspended contracts with Israeli companies in recent months to approximately $654 million. The halt on new deals worth billions of dollars also threatens long-term exports.