US arms sale to Israel sees $32billion surge, “biggest in history”
A Wall Street Journal investigation reveals an unprecedented $32 billion flood of US arms to Israel since 2023.
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A Wall Street Journal investigation published on Thursday details how Israel’s war on Gaza has driven an unprecedented surge in US weapons sales, with Washington approving more than $32 billion in armaments, ammunition and equipment for Israel since October 2023.
According to the report, the escalation in US arms transfers has created a booming market for major US defense contractors—most notably Boeing, Northrop Grumman, Caterpillar, Lockheed Martin, and General Dynamics.
The WSJ wrote that Israel’s war “built an unprecedented arms pipeline from the US to Israel that continues to flow,” generating substantial business for leading American companies.
Expanding Arms Deals
The investigation found that Boeing has been the single largest beneficiary of wartime demand.
The US approved an $18.8 billion sale of Boeing F-15 strike fighters to Israel last year, with deliveries starting in 2029. In 2025, additional guided-bomb packages and associated kits, where Boeing plays a leading role, received $7.9 billion in approvals.
These amounts surpass Israel’s previous pledge in 2018 to purchase $10 billion from Boeing over a decade. According to the WSJ, they now represent “a significant portion of the company’s $74 billion in current orders.”
Other companies highlighted in the report include: Northrop Grumman, supplying fighter-jet spare parts Lockheed Martin, providing high-precision missiles General Dynamics, producer of 120mm shells for Merkava tanks Caterpillar, whose armored D9 bulldozers have been “ubiquitous” in Gaza Oshkosh, supplying vehicle hulls used in Israel’s Eitan armored carriers
Israel’s ground operations have also relied heavily on US-linked components, including Rolls-Royce engines manufactured by the company’s US unit.
Costs for US Taxpayers
The investigation also emphasized that US taxpayers are financing much of the flow. Israel’s annual foreign military financing package, normally $3.3 billion, surged to $6.8 billion in 2024, excluding additional non-cash support.
A US State Department spokesperson told the WSJ that “the Trump Administration has consistently supported Israel’s right to defend itself and is now leading a regional effort to bring this war to an end.”
The report documented growing investor and institutional resistance to companies involved in the war.
Three Norwegian funds have divested from firms including Oshkosh, Palantir, Caterpillar and Thyssenkrupp. On October 1, Dutch pension giant ABP sold its $448 million stake in Caterpillar, citing concerns related to Gaza.
Germany, the WSJ reported, announced in August that it will no longer approve weapons exports to Israel for use in Gaza.
Tech companies have also faced internal dissent. In September, Microsoft “disabled the Israeli Defense Ministry’s access to some cloud services” after staff protests, the WSJ wrote.
AI and Surveillance
The investigation noted that Palantir entered a partnership with Israel’s Defense Ministry in 2024.
At a 2025 event, CEO Alex Karp rejected allegations that the company’s tools facilitated civilian deaths, telling a protester that those killed were “mostly terrorists.”
The company reportedly told the WSJ it is “proud to support Israeli defense and national security missions” and maintains “a longstanding commitment to the preservation of human rights.”
Humanitarian Contracting
The report also examined US contracting related to the humanitarian crisis.
In June, the State Department allocated $30 million to the Gaza Humanitarian Foundation, led by former Trump adviser Johnnie Moore, to distribute aid, hiring American contractors for security. The effort has been “beset by dysfunction and violence,” according to the WSJ.
Continued Demand despite Ceasefire
Even as a fragile truce takes hold, US defense companies expect business to remain strong.
Lockheed Martin’s annual report said it benefited from “increased American defense funding related to Israel and Ukraine,” while Boeing described international arms sales as a rare positive area amid wider production challenges.
The Trump administration has also sought congressional approval for nearly $6 billion in additional weapons, including a $3.8 billion deal for Boeing Apache helicopters, which would nearly double Israel’s fleet.
