Israel’s arms sales are still booming. But pressure over its war in Gaza is exacting a cost

srael’s Prime Minister Benjamin Netanyahu is preparing his nation for, in his words, a “kind of isolation” that could last for years.

For the first time, the usually intransigent leader conceded last week that international outrage over how Israel is waging war in Gaza is turning Israel into a potential pariah. While he subsequently walked back his bleak prognosis, Netanyahu underscored a reality: Israel’s place on the global stage is changing.

For the first time, the usually intransigent leader conceded last week that international outrage over how Israel is waging war in Gaza is turning Israel into a potential pariah. While he subsequently walked back his bleak prognosis, Netanyahu underscored a reality: Israel’s place on the global stage is changing.

Spain, after months of signaling, last week annulled hundreds of millions worth of orders for battlefield weapons made by Israeli companies. Prime Minister Pedro Sanchez, who formally recognized Palestinian statehood in May 2024, called Israel’s war in Gaza “barbarity” and has called for more punitive action against Israel, including for it to be barred from international sporting competitions and the Eurovision Song Contest.

Oded Yaron, arms industries and technology reporter at Israel’s left-leaning Haaretz newspaper, has warned that Israel cannot afford for others to follow Sanchez’s lead. “We don’t have the economy to support it; if we don’t sell it to other countries, it will inevitably lead to damage of Israel’s defense,