By Benoit Faucon

Two years on, Israel's war in Gaza might be finally drawing to a close. The conflict built an unprecedented arms pipeline from the U.S. to Israel that continues to flow, generating substantial business for big U.S. companies -- including Boeing, Northrop Grumman and Caterpillar.

Sales of U.S. weapons to Israel have surged since October 2023, with Washington approving more than $32 billion in armaments, ammunition and other equipment to the Israeli military over that time, according to a Wall Street Journal analysis of State Department disclosures.

Israel responded to the Oct. 7, 2023, attack led by Hamas, which killed about 1,200 people and took 251 hostages, with a military invasion that has killed more than 68,000 people in Gaza -- including more than 18,000 children -- according to Gaza health authorities, who don't say how many were combatants.

The war has been devastating for the Palestinian enclave and has vastly increased hostility between Israel and other Middle East nations. The fighting throughout the region has presented a fresh opportunity for defense companies in the American heartland and, to a lesser extent, tech giants on the West Coast.

Much of the bill has been footed by U.S. taxpayers. Israel normally gets $3.3 billion in foreign military financing each year, a number that more than doubled last year to $6.8 billion. That figure doesn't include noncash forms of assistance.

Even if the truce grows into a lasting peace, Israel will likely continue to face threats from regional adversaries such as Iran and militants in Yemen, Lebanon and elsewhere. And defense contracts approved by Washington are typically planned years ahead.

A spokesperson for Israeli Prime Minister Benjamin Netanyahu referred questions to the Israeli Defense Ministry, which declined to comment. The Israel Defense Forces declined to comment.

The American company that has brought in the most Israeli business since the Gaza war began is Boeing. The U.S. greenlighted an $18.8 billion sale of Boeing F-15 strike fighters last year to Israel for delivery beginning in 2029. This year, various partnerships in which Boeing plays a leading role got approval for $7.9 billion of sales of guided bombs and associated kits. That is much more than the $10 billion Israel pledged in 2018 to purchase from Boeing over the next decade, and it would account for a significant portion of the company's $74 billion in current orders.

Other companies that have secured approved weapons sales include Northrop Grumman, which provides spare parts for jet fighters; Lockheed Martin, a supplier of high-powered precision missiles; and General Dynamics, a provider of 120mm shells that Israel's Merkava tanks fire.

The biggest defense sales approved by Washington are for jet fighters and airborne-guided bombs, reflecting the crucial role of aerial bombings in the conflict. Contracts related to ground operations -- bulldozers, tank shells and vehicles for troop and tank transport -- represent much smaller amounts.

Israel's Eitan armored fighting vehicles, which have been used widely across Gaza, are equipped with a hull from Wisconsin-based Oshkosh and an engine made by Rolls-Royce's U.S. unit in Michigan. Caterpillar's D9 armored bulldozers -- used to clear rubble and destroy residences and other structures -- have been ubiquitous.

Boeing, Northrop Grumman and General Dynamics referred questions to the U.S. government. A State Department spokesman said "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."

In some cases, companies have faced a backlash from investors and employees over their sales to the Israeli military. In the past year, three Norwegian investment funds have sold their stakes in Oshkosh, Palantir Technologies, Caterpillar and Thyssenkrupp over the use of their products for the war in Gaza. On Oct. 1, Dutch pension fund ABP -- the biggest in the Netherlands, with more than $400 billion under management -- sold its EUR387 million, or $448 million, stake in Caterpillar, citing concerns over Gaza.

In August, Germany said it would no longer approve weapons exports to Israel for use in the Gaza Strip until further notice.

In September, 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 Alphabet-owned Google and Amazon.com had clinched deals with Israel to provide artificial-intelligence and cloud-computing services to the military.

Meanwhile, AI giant 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 Chief Executive Alex Karp responded to accusations from a protester that Israel used Palantir's technology to kill Palestinians, saying that those who were killed were "mostly terrorists." The company's 2024 annual report says its current operations related to Israel aren't material to its financial results.

In response to questions, a Palantir spokesman referred to a previous statement saying the company is "proud to support Israeli defense and national security missions" and "has a longstanding commitment to the preservation of human rights." Amazon and Google didn't respond to requests for comment. Microsoft declined to comment.

American companies have also found business opportunities in responding to the humanitarian crisis sparked by the war. The U.S. State Department said in June that it had allocated $30 million to the Gaza Humanitarian Foundation, led by former Trump adviser Johnnie Moore, to oversee aid handouts. The foundation hired American contractors Safe Reach Solutions and UG Solutions to provide security for the distribution efforts, which have been beset by dysfunction and violence.

In its most recent annual report, Lockheed Martin said it had benefited from increased American defense funding related to Israel and Ukraine, notably munitions purchases. Revenue at its missiles division rose 13% last year to $12.7 billion.

Armored-vehicles maker Oshkosh said an Israeli order of tactical vehicles had extended the lifespan of a production line that was due to shut last year.

In its latest quarterly report, Italian contractor Leonardo, whose U.S. unit is selling tanker trailers to Israel, said its international sales should remain stable this year because of "the continuing conflicts in both Ukraine and Israel."

For Boeing, which has contended with two years of supply disruptions and strikes, international arms sales have been a rare bright spot. In its 2024 earnings filing, the company said its defense subsidiary received a boost from "solid demand as governments prioritize security, defense technology and global cooperation given evolving threats."

The Trump administration is continuing its support. It is seeking congressional approval to sell nearly $6 billion in weapons to Israel, including a $3.8 billion deal for Boeing's Apache helicopters that would nearly double Israel's current fleet of the aircraft.

Write to Benoit Faucon at benoit.faucon@wsj.com

(END) Dow Jones Newswires

November 12, 2025 12:00 ET (17:00 GMT)

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