Israel entered 2025 looking to a new US administration to be a gamechanger for Jerusalem’s multi-front war.
Much of 2024 had been spent fighting in Gaza and also in Lebanon, with mixed results. While Israel’s conduct drew international condemnation, the Gaza conflict also became a proving ground for many new Israeli technologies, from making old vehicular platforms such as M113s and D-9s into autonomous unmanned robots, to pushing AI and other technologies to the front.
[This article is one of many in a series in which Breaking Defense reporters look back on the most significant (and entertaining) news stories of 2025 and look forward to what 2026 may hold.]
Meanwhile, the Israeli defense industry looked abroad for new customers for its battle-proven tech. Here are some key stories from my coverage from inside Israel in 2025.
1. Amid embargoes, how independent can Israel’s defense industry be?
One way in which international criticism of Israel’s tactics in Gaza presented itself was for foreign nations to publicly vow not to send Israel defense equipment. This didn’t affect Israeli deals to provide other countries with systems, such as the Arrow 3 for Germany. However, it did raise questions about whether Israel will continue to face these embargoes in the future.
As noted in this piece from September, “analysts told Breaking Defense that while it would be in Jerusalem’s interest to build more defense components and platforms at home, there are clear limits to what the defense industry is capable of on its own.”
Israel already makes a large number of systems at home. Even when Israel takes delivery of large platforms, such as the Sa’ar 6 corvettes, it usually fills them almost entirely with its own systems. The F-35s have also been slightly modified. As such, Israel’s reliance on foreign countries for arms boils down to some critical elements, such as some types of munitions or aircraft, but in general Israel has an arms industry that is unique for a small country.
2. Lasers in the Field: Iron Beam clears last test before operational use
One of the systems Israel pushed forward to delivery in 2025 was the laser air defenses the country has promised it will roll out. Developed by Rafael Advanced Defense Systems to be an add-on to Iron Dome, the defenses are short range but will help reduce costs.
The lasers have been in development for many years and Israel envisions a ground-based laser interceptor capability along with an aerial one that is being developed by Elbit Systems. Rafael, a state-owned company that produces Iron Dome and David’s Sling, has focused on the ground based system.
The challenge for lasers is going to be the range and the time on target it takes to basically burn through a missile, drone or other threat. With time the lasers become better, like any system, but it will take time for them to reach maturity.
3. Israel to acquire KC-46A refuelers
US-Israel relations were in the spotlight in 2025. After the Biden administration there was a lot of hope in Jerusalem that the Trump administration would be more supportive. This has led to mixed results.
The US administration has certainly supported Israel but also cautioned Jerusalem against continuing the war in Gaza and also against increasing tensions with Syria.
But as this story from August showed, on the military level, US-Israel ties are very close. This includes not only cooperation with US Central Command, but Israel’s decision to continue to acquire more platforms. In this case, Israel chose to purchase more KC-46A refuelers, presumably for use in long-distance operations — like the kind capable of striking targets in Iran.
4. Israeli defense exports hit record $14.7 billion, despite regional conflicts
This year there was a question hovering over the Israeli defense industry: Could it keep up with export contracts while still supplying Israel’s own military with defense articles it needed amid a multi-front war? In June Israel’s Ministry of Defense put the question to rest at least about the year prior, saying that Israeli firms netted a record $14.7 billion in export deals.
“This is the third year in a row that Israeli defense exports have reached a record level, a feat that comes as Israeli industry has also been supplying the nation’s own forces for combat on several fronts. The ministry said that 54 percent of the 2024 deals were with European countries,” we noted at the time.
5. Israel targets Iranian military leaders, nuclear sites in wave of strikes: IDF
Easily among the biggest moments in the Middle East this year came in June when the Israel Defense Forces began a 12-day conflict with Iran.
The war was unprecedented for Israel in terms of the complexity of long-range air operations. It was conducted primarily from the air and sought to neutralize Iran’s air defenses and then go after several key sites linked to the Iranian nuclear program. Israel began the campaign by striking key Iranian leaders, including high-ranking members of the Islamic Revolutionary Guard Corps.
In some ways the aerial campaign had similarities to other historic campaigns such as the 1991 Gulf War when the US-led coalition spent weeks striking Iraq before the ground invasion. However, Israel’s campaign looked more like historic Israeli successes of old, such as the 1967 war, which began with preemptive air strikes.
After a long slog in Gaza which led to questions about how Israel’s high-tech army was performing against a militant group, the air campaign against Iran illustrated Israel’s capabilities were still first rate. Cooperation with the US and Central Command also has been a key element of Israel’s success.