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Despite War, Israel Sees Surge in Multibillion-Dollar Defense, Tech, Energy Deals in 2025

Flags flutter in front of a radom of the “Arrow Weapon System for Germany” pictured in Annaburg, Germany, Dec. 3, 2025. Photo: REUTERS/Axel Schmidt

Despite predictions that the Gaza war would isolate its economy, Israel in 2025 signed a series of multibillion-dollar defense, technology, and energy deals with Western and Arab powers, extending commercial ties even amid massive diplomatic pressure.

Israeli technology acquisitions and public listings totaled nearly $59 billion in 2025, a jump of roughly 340% from the previous year, according to a PwC Israel report released last week, driven by multibillion-dollar deals in cybersecurity, insurance, and fintech and a rebound in IPOs. Multibillion-dollar missile defense, artillery, and munitions contracts were signed with Germany, Greece, and Gulf partners. Israel also approved a natural gas deal worth tens of billions of dollars with Egypt, its largest energy export to date.

Venture capitalist and former Knesset member Erel Margalit said Israel’s innovation economy “proved its resilience” in 2025, “against war, geopolitical pressure, and repeated predictions of slowdown.”

Alphabet’s blockbuster $32 billion acquisition of Israeli cybersecurity firm Wiz was one of the largest cyber transactions on record and accounted for a significant share of Israel’s tech dealmaking in 2025. But even excluding the Wiz deal, Israeli tech exits more than doubled to around $32 billion, according to PwC Israel, including six additional buyouts valued at more than $1 billion and seven IPOs of Israeli-founded companies with a combined valuation of $14.6 billion, up from just $781 million a year earlier.

The momentum also extended to long-term foreign investment. US chip giant Nvidia announced last week that it will build a “multi-billion shekel” R&D campus in northern Israel, expected to become second in size only to the company’s Silicon Valley headquarters. The site, slated to break ground in 2027 near Kiryat Tivon, will employ more than 10,000 people. Founder and chief executive Jensen Huang has described Israel as Nvidia’s “second home,” saying the country is “home to some of the world’s most brilliant technologists.”

Nvidia also committed about $1.5 billion to build Israel’s largest data center in the Galilee, which will house a new supercomputer supporting its AI development. The announcement comes amid reports that Nvidia has agreed to acquire AI chip startup Groq for about $20 billion in cash, in its largest-ever deal. 

Referring to the Israeli R&D center, Huang said: “Our new campus will be a place where our teams can collaborate, invent, and build the future of AI.”

In defense, several large contracts were finalized in recent weeks. Germany last week approved a multibillion-dollar expansion of its purchase of Israel’s Arrow-3 missile defense system, increasing the total value of the agreement to about $6.5 billion, the largest defense export in Israel’s history. Greece last month approved the purchase of PULS launchers from Elbit Systems in a deal valued at about $755 million. In a separate, highly secretive deal, the defense giant last month signed its largest-ever contract, a $2.3 billion agreement to supply an advanced strategic system to a foreign customer widely reported to be the United Arab Emirates.

Energy was another area where Israel closed the year with a headline-making agreement. Israel last week approved a $35 billion natural gas export agreement with Egypt, the largest such deal in the country’s history. Under the agreement, partners in Israel’s Leviathan offshore project, led by Chevron, will supply Egypt with about 130 billion cubic meters of gas through 2040. Roughly half of the proceeds, estimated at 112 billion shekels, will flow to the Israeli state. Prime Minister Benjamin Netanyahu said the deal “greatly strengthens Israel’s position as a regional energy power” and would funnel tens of billions of shekels into the economy and public services.

Egyptian officials, whose government has acted as a mediator in the Israel-Hamas conflict, stressed that the agreement is a commercial transaction “with no political aspects.”

Margalit said the scale of dealmaking in 2025 reflected a return to fundamentals rather than speculative excess. “This was not a hype cycle,” he told The Algemeiner, “but a reaffirmation of Israel’s ability to build technology, particularly in advanced AI verticals, for the hardest and most regulated parts of the real economy: cybersecurity, fintech, insurance, defense, and energy.”

“In these fields, trust, precision, and accountability decide outcomes, and that is why global capital and strategic partners returned to Israel at scale,” he added.

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Iran Says Talks With US in Oman Were ‘Good Start,’ Will Continue

Iran’s Foreign Minister Abbas Araghchi is welcomed by an Omani official upon his arrival in Muscat, Oman, in this handout image obtained on Feb. 6, 2026. Photo: Iranian Foreign Ministry/WANA (West Asia News Agency)/Handout via REUTERS

Iran’s top diplomat said on Friday that nuclear talks with the US mediated by Oman were off to a “good start” and set to continue, in remarks that could help allay concern that failure to reach a deal might nudge the Middle East closer to war.

But Foreign Minister Abbas Araqchi said after the talks in the Omani capital Muscat that “any dialogue requires refraining from threats and pressure. [Tehran] only discusses its nuclear issue … We do not discuss any other issue with the US.”

While both sides have indicated readiness to revive diplomacy over Tehran’s long-running nuclear dispute with the West, Washington wanted to expand the talks to cover Iran‘s ballistic missiles, support for armed terrorist groups around the region, and “treatment of their own people,” US Secretary of State Marco Rubio said on Wednesday.

Iranian officials have repeatedly ruled out putting Iran‘s missiles – one of the largest such arsenals in the Middle East – up for discussion, and have said Tehran wants recognition of its right to enrich uranium.

For Washington, carrying out enrichment – a possible pathway to nuclear bombs – inside Iran is a red line. Tehran has long denied any intent to weaponize nuclear fuel production.

“It was a good start to the negotiations. And there is an understanding on continuing the talks. Coordination on how to proceed will be decided in the capitals,” Araqchi told Iranian state TV. “If this process continues, I think we will reach a good framework for an understanding.”

TALKS WERE ‘VERY SERIOUS,’ SAYS OMAN

Mediator Badr al-Busaidi, Oman’s foreign minister, said the talks had been “very serious,” with results to be considered carefully in Tehran and Washington. The goal was to reconvene in due course.

The Islamic Republic’s clerical leadership remains deeply worried that Trump may still carry out his threats to strike Iran after a US naval buildup in seas in the region.

“The lack of trust is a huge challenge during the talks, and it should be overcome,” Araqchi said.

Last June the US struck Iranian nuclear targets, joining in the final stages of a 12-day Israeli bombing campaign. Tehran has since said it has halted uranium enrichment activity.

The naval buildup, which Trump has called a massive “armada,” has followed a bloody government crackdown on nationwide protests in Iran last month, heightening tensions between Washington and Tehran.

Trump warned the Iranian regime not to use violence to crush the nationwide anti-government protests. According to several reports, however, Iran’s security forces killed tens of thousands of demonstrators during what appears to be one of the bloodiest crackdowns in modern history.

Trump has warned that “bad things” will probably happen if a deal cannot be reached, ratcheting up pressure on the Islamic Republic in a standoff that has led to mutual threats of air strikes.

World powers and regional states fear a breakdown in the negotiations would ignite another conflict between the US and Iran that could spill over to the rest of the oil-rich region.

Iran has vowed a harsh response to any strike and has cautioned neighboring Gulf Arab countries that host US bases that they could be in the firing line if they were involved in an attack.

Negotiators in Oman will have to navigate Iran‘s red line on discussing its missile program to reach a deal and avert future military action. Tehran has flatly ruled out talks on its “defense capabilities, including missiles and their range.”

In a show of defiance, Iranian state TV said hours before the talks that “one of the country’s most advanced long-range ballistic missiles, the Khorramshahr-4,” had been deployed at one of the Revolutionary Guards’ vast underground “missile cities.”

However, Tehran is willing to show “flexibility” on uranium enrichment, including by handing over 400 kg of highly enriched uranium – refined closer to bomb-grade – and accepting zero enrichment under a consortium arrangement as a solution, Iranian officials told Reuters last week.

Iran also demands the lifting of US sanctions, reimposed since 2018 when Trump, during his first term in the White House, ditched Iran‘s 2015 nuclear deal with six world powers.

The United States, its European allies, and Israel accuse Tehran of using its nuclear energy program as a veil for efforts to develop the capability to produce atomic bombs. Iran says its nuclear program is for peaceful purposes only.

Israel has likened the danger of Iran‘s missiles to its nuclear program. Prime Minister Benjamin Netanyahu said in January that Iran‘s “attempt to build atomic weapons” and “20,000 ballistic missiles” were like “two lumps of cancer.”

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‘You Will All Burn!’ Haverford Bans Pro-Hamas Hecklers From Campus Over Event Disruption

Masked woman disrupting Middle East talk held at Haverford College on Feb. 1, 2026. Photo: Screenshot.

Haverford College in Pennsylvania has identified and banned from campus at least two members of a pro-Hamas group that disrupted an event featuring Middle East scholar Haviv Rettig Gur on Sunday.

As seen in footage shared on the X social media platform, one of the individuals, who concealed her face with a keffiyeh scarf in the style popularized by the Palestinian Liberation Organization terrorist leader Yasser Arafat, screamed “When Gaza has burned, you will all burn too.”

“Shame! Shame! Shame!” she continued while being escorted out. The individuals continued to scream unintelligible statements outside the lecture hall while banging on its door, prompting Rettig to comment on the incivility of political speech in contemporary higher education.

“It amazes me that this happens most intensely at institutions in America,” he said.

On Wednesday, a public relations official for Haverford College shared with The Algemeiner a statement the college issued to signal that it is not hesitating to respond to actions it described as “clear violations of Haverford’s Policy on Expressive Freedom and Responsibility.” The statement noted that there was also violence during the disruption, noting “at least one physical altercation between attendees.”

“We have gathered sufficient evidence to identify both the individual who used a bullhorn and the audience member who initiated physical contact with them,” the statement said. “We can confirm that neither of the parities is a student, nor are they members of the Haverford College community. As we conclude our investigation, the persons in question will be considered persona non grata, which bans them from our campus indefinitely. If they are found to be on Haverford’s campus, their presence will be considered trespassing, and the college will contact local police.”

On Monday, Haverford president Wendy Raymond condemned the group’s conduct, saying, “Shouting down a speaker whom one does not agree with is never acceptable and stands outside of our shared community values.”

Raymond added, “We strive to be a campus where all experiences and opinions matter … the fact that this event proceeded with nearly three hours of thoughtful and constructive discussion illustrates how valuable these types of learning opportunities are to our educational mission.”

The 2025-2026 academic year has seen a number of similar disturbances on colleges campuses, with anti-Zionist activists continuing to disrupt events and stage demonstrations even after Israel and Hamas agreed to a ceasefire in Gaza.

In October, masked pro-Hamas activists breached an event held at Pomona College in California to commemorate the victims of the Oct. 7, 2023, massacre in which Hamas-led Palestinian terrorists raped, murdered, and abducted women, children, and men during their rampage across southern Israel.

Footage of the act circulated on social media showed the group attempting to raid the room while screaming expletives and pro-Hamas dogma. They ultimately failed due to the prompt response of the Claremont Colleges Jewish chaplain and other attendees who formed a barrier in front of the door to repel them, a defense they mounted on their own as campus security personnel did nothing to stop the disturbance, according to video of the incident and witnesses who spoke to The Claremont Independent.

Following the incident, an anonymous group claimed credit for storming the event in a disturbing open letter.

“Satan dared not look us in the eyes,” the note said, which the group released on social media, while attacking event guests and Oct. 7 survivor Yoni Viloga. “Immediately, zionists [sic] swarmed us, put their hands on us, shoved us, while Viloga retreated like he did on October 7th, 2023.”

Appearing to threaten murder, the group added, “We let that coward know he and his fascists settler ideology are not welcome here nor anywhere. zionism is a death cult that must be dealt with accordingly [sic].”

In January, a sophomore and right-wing social media influencer at the University of Miami verbally attacked a Jewish student group, leading the school to defend free speech while saying that “lines can be crossed” in response.

“Christianity, which says love everyone, meanwhile your Bible says eating someone who is a non-Jew is like eating with an animal. That’s what the Talmud says,” Kaylee Mahony yelled at members of Students Supporting Israel (SSI) who had a table at a campus fair. “That’s what these people follow.”

She continued, “They think that if you are not a Jew you are an animal. That’s the Talmud. That’s the Talmud.”

Mahony could also be heard in video of the incident responding to one of the SSI members, saying, “Because you’re disgusting. It’s disgusting.”

Later, Mahony, whose statements were first reported by The Miami Hurricane student newspaper, took to social media, where she has more than 125,000 followers on TikTok, and posted, “Of course the most evil (((country))) in the world is filled with (((people))) who hate Jesus [sic].”

The “((()))” is used by neo-Nazis as a substitute for calling out Jews by name, which, given the context in which they discuss the Jewish people, could draw the intervention of a content moderator.

Follow Dion J. Pierre @DionJPierre.

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Free Speech Advocacy Group Walks Back Condemnation of Israeli Comedian’s Shows Being Abruptly Canceled

The Israeli national flag flutters as apartments are seen in the background in the Israeli settlement of Maale Adumim in the West Bank, Aug. 16, 2020. Photo: REUTERS/Ronen Zvulun

An organization dedicated to protecting free speech has withdrawn a statement in which it condemned the last-minute cancellations of two performances by Israeli comedian Guy Hochman, after he faced backlash over his support for Israel.

Two venues, in New York and California, canceled Hochman’s scheduled performances last month.

Hochman’s show in New York City was canceled by its venue due to safety concerns after anti-Israel protesters picketed outside of the establishment.

The Fine Arts Theater in Beverly Hills, California, then called off Hochman’s gig after receiving pressure from anti-Israel activists, including threats of violence. The theater said it made the decision also after Hochman declined the venue’s demands to publicly condemn his home country of Israel for the alleged “genocide, rape, starvation, and torture of Palestinian civilians.”

PEN America initially condemned the cancellations of Hochman’s shows in a statement shared on its website on Jan. 29. At the time, Jonathan Friedman, the managing director of US free expression programs at PEN America, said, “It is a profound violation of free expression to demand artists, writers, or comedians agree to ideological litmus tests as a condition to appear on a stage.”

“People have every right to protest his events, but those who wish to hear from Hochman also have a right to do so,” Friedman added. The statement accused Hochman of “dehumanizing social media posts about Palestinians” but also noted that “shutting down cultural events is not the solution.”

On Tuesday, however, PEN America removed the message from its website and replaced it with another statement explaining the move: “On further consideration, PEN America has decided to withdraw this statement. We remain committed to open and respectful dialogue about the divisions that arise in the course of defending free expression.” A spokesperson for PEN America did not immediately respond to The Algemeiner‘s request for comment to further explain the organization’s change of heart.

In 2024, a campaign was launched to boycott PEN America after the group was accused of being apologetic to the alleged “genocide” of Palestinians and “apartheid” in Israel, as well as of “normalizing Zionism.”

Members of PEN America include novelists, journalists, nonfiction writers, editors, poets, essayists, playwrights, publishers, translators, agents, and other writing professionals, according to its website. The organization has a page on its website dedicated to information about “Israel and the Occupied Palestinian Territory,” which begins by claiming that the “Israeli government has cracked down on free expression of writers and public intellectuals in the wake of the Oct. 7, 2023, attack on Israel by Hamas.” The webpage is highly critical of the Jewish state and its military actions in the Gaza Strip during the Israel-Hamas war, which started in response to the deadly rampage orchestrated by the US-designated terror organization across southern Israel on Oct. 7, 2023.

The same webpage highlights a list of “individual cases” of Palestinian activists and writers that Israel has allegedly detained, arrested, or convicted, but there are no specific details shared about their offenses. The list includes Palestinian poet Dareen Tatour, who was convicted of incitement to terrorism for a poem she wrote and comments she made on social media during a wave of Palestinian attacks against Jews.

The list also includes Palestinian activist Ahed Tamimi, but the provided description about Tamimi does not mention that she was convicted on four counts of assaulting an IDF officer and soldier, incitement, and interference with IDF forces in March 2018.

A third writer on the list is Mosab Abu Toha, a Pulitzer Prize-winning poet and essayist who tried to justify Hamas’s abduction of Israelis on Oct. 7, 2023.

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