Gaza War: Huge American Business Gains from Humanitarian Tragedy

Washington – "Jerusalem" dot com - Said Arikat

The war on Gaza, since its outbreak in October 2023, has not been merely a bloody conflict between Israel and Palestinian factions; rather, it has transformed, as revealed by the Wall Street Journal, into one of the most profitable wars in modern history for American arms companies. Behind the massive destruction that has turned Gaza into rubble, a comprehensive war economy has emerged, fueled by American financing and military policies that blend strategic interests with commercial profits.

According to the investigation published by the American newspaper, Washington approved arms and military equipment deals for Israel over the past two years exceeding $32 billion, an unprecedented figure in the history of defense relations between the two countries. This continuous flow of weapons and equipment has made the war in Gaza a major catalyst for the prosperity of companies like Boeing, Northrop Grumman, Lockheed Martin, and Caterpillar, which have secured contracts worth billions of dollars to supply the Israeli army with everything it needs, from aircraft and missiles to armored bulldozers.

Although Israel receives $3.3 billion annually in American military funding, this amount doubled in 2024 to reach $6.8 billion, not counting non-cash aid or logistical and intelligence support. Thus, American taxpayers have become indirect financiers of a war that has accumulated profits for giant corporations while leaving tens of thousands dead and hundreds of thousands injured and displaced Palestinians.

Profit in Times of War

Boeing topped the list of beneficiaries from the "war economy," having received American approval to sell F-15 fighter jets worth $18.8 billion, to be delivered starting in 2029, in addition to other contracts for air-launched guided bombs valued at $7.9 billion. The newspaper estimates that these deals alone account for about a quarter of the company's current defense orders.

As for Lockheed Martin, the main supplier of precision missiles, it announced in its annual report for 2024 a 13% increase in revenues from its missile division, reaching $12.7 billion, noting that a significant portion of this increase came from Israeli demand.

Caterpillar also benefited from the war, as its armored D9 bulldozers are widely used to demolish Palestinian homes and clear rubble within Gaza, while Oshkosh supplies the Israeli army with "Eitan" armored vehicles and American engines produced by the Rolls Royce unit in Michigan.

However, this commercial boom is not without political and ethical costs. Some American companies have faced negative reactions from investors and human rights organizations, prompting major European pension funds to sell their stakes in companies involved in supplying weapons to Israel, such as Caterpillar, Oshkosh, and Palantir. Germany also announced a halt to arms exports to Israel until further notice, signaling the increasing tension between economic gains and humanitarian considerations.

Technology and Artificial Intelligence Companies at the Heart of the Battle

The American gains have not been limited to traditional defense industries but have extended to major technology companies that have entered the field of digital warfare. Microsoft, Google, and Amazon have signed agreements to provide cloud computing and artificial intelligence services to the Israeli army. In January 2024, Palantir, a company specializing in military data analysis, announced an official partnership with the Israeli Ministry of Defense.

Despite the criticism the company has faced for its technologies being used in military operations against Palestinians, its CEO Alex Karp has strongly defended cooperation with Israel, describing the dead in Gaza as "mostly terrorists." This stance, which has angered activists and human rights advocates, reveals another aspect of the ambiguous relationship between modern technology and modern wars, where artificial intelligence becomes a tool of combat as much as it is a means of surveillance and control.

Who Funds the War and Who Reaps Its Benefits?

These facts clearly highlight the economic dimension of the Gaza war: while it is presented as a security confrontation between Israel and Hamas, it actually fuels a vast financial interest network linking the American military-industrial complex with Washington's foreign policies.

Every bullet fired in Gaza, every missile launched at the strip, carries behind it the signature of a company and government approval, a deal funded by American taxpayers' money.

It seems that the American administration – despite its humanitarian rhetoric – views the war from the perspective of "strategic investment," justifying support for Israel as a security necessity, while its companies benefit from long-term contracts that ensure continued demand for weapons even during periods of relative calm.

The Gaza war has become a stark example of what is known as "sustainable war economy," turning destruction into a resource and tragedy into an opportunity. While Palestinians pay the price in blood and displacement, American companies reap profits, in a paradox that summarizes the moral dilemma in the contemporary international system: a war that claims lives, revitalizing markets.