The Gaza war has been big business for U.S. companies

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.

- Benoit Faucon

The American company that has brought in the most Israeli business since the Gaza war began is Boeing.

(BLOOMBERG)

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 toa 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, toa 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, anumber that more than doubled last year to $6.8 billion. That figure doesn't include noncash forms of assistance.

Even ifthe truce growsinto a lasting peace, Israel will likely continue to face threats from regional adversariessuch aslran andmilitantsin 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.