Episode summary
Why Israeli Weapons Are in Demand Despite Global Criticism
Wall Street Week
· · Guests: Dan Senor, Boaz Levy, Kobi Kagan, Yishai Cohen, Udi Oster, Moshiel Biton
Summary
Global criticism of Israel has not stopped demand for its defense technology. The host says 2024 defense exports reached nearly $15 billion, a record, even as more than 150 countries condemned Israel’s conduct in Gaza. The episode argues that the gap between rhetoric and purchasing behavior is central: countries may denounce Israel publicly, but they still buy systems they see as combat-proven and technically superior.
Dan Senor says many boycott calls have been largely performative, while defense executives and officials argue that Israel’s wartime experience has turned the country into a live laboratory for missile defense, drones, and other battlefield systems. Israel Aerospace Industries points to its $3.5 billion Aero 3 deal with Germany, and Elbit Systems says its order book rose by $3 billion to $25 billion, led by international orders.
The episode also emphasizes how the war accelerated Israel’s defense startup ecosystem. A startup founder describes building drone technology to get better tools to soldiers, while another entrepreneur says he pivoted from batteries to defense after October 7. The core claim is that buyers want what works in combat, and Israel is supplying it at scale.
Key takeaways
- The host says Israel’s 2024 defense exports hit nearly $15 billion, the highest in the country’s history.
- Dan Senor argues that many foreign boycott and embargo threats have been largely performative.
- Israel Aerospace Industries says the $3.5 billion Aero 3 sale to Germany proved embargo pressure did not derail major programs.
- Elbit Systems says its order book increased by $3 billion to $25 billion, driven mostly by international orders.
- Colonel Yishai Cohen says Israel’s systems are becoming “combat-proven” and “combat-improved” through repeated battlefield testing.
- A startup founder says the war pushed new defense companies to focus on getting advanced technology into soldiers’ hands quickly.
Notable quotes
“the world wants more Israeli weapons than ever before. In 2024, defense exports were valued at nearly $15 billion”
“-We are not afraid from embargo, but we don't like it as well”
“we are currently engaging with more than 300 start-ups. Just before the war the number was almost half of that, was 170”
“-We have $3 billion increase in our order book from around $22 billion to $25 billion, mostly from international orders”
How the episode opens
Last week, we told you about how the Israeli tech sector has fared in the wake of the war in Gaza. This week, we focus on the defense tech industry specifically, and how it's been affected by over 150 countries around the world speaking out against Israel for the way it has prosecuted the war, with some imposing sanctions. Westin: It was a war born out of the worst terrorist attack in Israel's history, and the ensuing conflict left tens of thousands dead with much of Gaza in ruins.
Countries around the world say they have had enough. -End the occupation! Westin: Despite talking the talk of criticizing Israel, what have countries actually done to walk the walk since the war began?
Well, it turns out that the world wants more Israeli weapons than ever before. In 2024, defense exports were valued at nearly $15 billion. That's the highest in the country's history.
And though much of that demand comes from the United States, it's far from the only country lining up at Israel's door. -Chancellor Merz in Germany has said that his goal by 2030 is to have Germany be the most powerful army in Europe. The problem is something like 40 to 50 percent of young Germans say they don't want to serve in the army.
So if they don't have the personnel, what exactly is Germany going to be investing in? They're going to be investing in technology capabilities. And Israel is on the cutting edge of those technology capabilities.
Westin: Dan Senor is host of the "Call Me Back" podcast, and authored "Start-up Nation" and "The Genius of Israel. How do you square the continued strength and even growth of the tech start-up sector in Israel with some of the denunciations from other countries during the war, even calls for boycotts?
From the episode’s captions: roughly the first two minutes, lightly cleaned. Keep watching on YouTube →
Topics
- israeli defense exports
- missile defense demand
- drone demand
- europe us india procurement
- global criticism gaza
Companies and tickers mentioned
- ESLT
- Israel Aerospace Industries
- Elbit Systems
Watch the episode
Watch “Why Israeli Weapons Are in Demand Despite Global Criticism” on YouTube
Summary, takeaways and quote selection by Octagon. Quotes are short excerpts; the full conversation is in the episode.
More from Wall Street Week
-
Wall Street Week | Nvidia Shakeup, Midwest Stadium Bids, Care Work Gap, India’s Wedding Economy -
What American Manufacturers Are Telling the Fed about the Economy -
Europe’s Welfare State Faces a Reckoning -
How the Blue Wave Could Reshape America’s Economy -
Inside Alaska’s Oil Paradox -
Wall Street Week | Blue Wave Economic Impacts, European Welfare Woes
Wall Street Week, this episode and its artwork belong to Bloomberg. Octagon is not affiliated with the show; this page is an independent summary.
