Israel’s Ministry of Defense approved the purchase of two new combat squadrons on May 3, 2026. These units consist of U.S.-built F-35 and F-15 fighter jets. The acquisition represents one of the largest defense investments in the nation’s history.

The move aims to expand long-range strike capabilities and penetrate defended airspace. This deal directly benefits manufacturers Lockheed Martin and Boeing. The large-scale order highlights persistent global demand for American military aircraft.

Such contracts provide positive revenue signals for core defense contractors and sector ETFs like XAR. The procurement belongs to a broader $119 billion military modernization plan. This strategy ensures operational readiness for the next decade. The acquisition strengthens a key U.S. ally while driving ongoing geopolitical demand.