Israeli and American arms companies have made massive profits from the ongoing Gaza War since October 7, 2023, turning the Palestinian territories into testing grounds for the latest military products from both countries during Operation "Al-Aqsa Flood." Amid the humanitarian tragedies and destruction in the Gaza Strip caused by these weapons, defense companies are monitoring the effectiveness of their new products in the field, providing evidence to country representatives and buyer clients, rather than testing the weapons in traditional exercise fields, according to military reports.
What are the indicators of arms companies' profits?
Israeli reports and the French website "Orient 21" state that the Tel Aviv Stock Exchange Index, which dropped by 9% at the beginning of the war, quickly bounced back due to record profits from Israeli military companies. Additionally, shares of American military companies listed on the Tel Aviv Stock Exchange increased due to the widespread destruction in Gaza, with the most notable beneficiaries being:
- "Third Eye" saw its shares rise by 83.7%.
- "Airodrome Group," which manufactures drones, achieved record profits.
- Shares for companies supplying artillery shells to Israel increased by 9.72%.
- "RTX Corp" and "Northrop Grumman" experienced a record increase in their share prices.
- "General Dynamics" recorded its largest gains at about 10%.
- Shares of American company "Lockheed Martin," which has supplied Israel with "F-16" and "F-35" planes, "Hellfire" missiles, and other equipment for decades, increased by 10.65%.
- "BlackRock" invested over $13 billion in arms companies this year and billions more in other manufacturers of internationally banned weapons, such as white phosphorus used in Gaza and cluster bombs.
The Israeli newspaper "Calcalist" reported that arms companies manufacturing the assault rifles used by the Israeli army in Gaza recorded record profits for the first time since 1948. According to Jason Aiken, vice president of General Dynamics, the current war has created a market opportunity for arms to achieve profits, with artillery shells ranking higher among arms orders.
