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Iran war: US arms sales surge $45 billion as regional powers race to stockpile

Muhammad Asghar | GlobalBeat

A single drone strike on Iran’s Natanz nuclear facility last month triggered a weapons shopping spree across the Middle East worth tens of billions.

The attack, widely blamed on Israel, sent regional powers scrambling to buy everything from Patriot missiles to bunker-busting bombs.

Saudi Arabia finalised a $15 billion deal for 300 Patriot interceptors within 72 hours. The UAE ordered $12 billion in THAAD surface-to-air missiles. Even Kuwait, historically cautious, requested $8 billion in new F-16 upgrades.

All three deals required State Department approval. All three got it in record time.

“The region is preparing for something bigger,” said Bruce Riedel, a former CIA officer now at the Brookings Institution. “Nobody wants to be caught empty-handed if this escalates.”

Washington’s defence contractors emerged as immediate winners. Raytheon stock jumped 18% in five trading days. Lockheed Martin added $24 billion in market value. Shares in Northrop Grumman hit an all-time high.

The Pentagon’s Defence Security Cooperation Agency approved $89 billion in foreign military sales during the final quarter of 2025. That’s more than the entire previous year combined.

Israel’s military spending jumped 40% overnight. Prime Minister Benjamin Netanyahu announced an emergency $20 billion procurement package that includes new F-15EX fighters and additional Iron Dome batteries.

“We will not allow Iran to obtain nuclear weapons,” Netanyahu told reporters in Jerusalem. “Whatever the cost, whatever it takes.”

Iran responded with its own shopping list. Tehran signed a $17 billion defence agreement with Moscow for Su-35 fighters, S-400 air defence systems, and conventional submarines. Russian military advisors arrived in Isfahan last week.

China’s Foreign Ministry called for restraint. Foreign Minister Wang Yi warned against “any action that could ignite the powder keg of the Middle East.” Beijing’s statement came hours after an unconfirmed report that Iran had requested emergency oil shipments from Venezuela.

European powers tried to contain the fallout. British Foreign Secretary David Lammy flew to Riyadh and Abu Dhabi seeking commitments to de-escalation. French President Emmanuel Macron proposed a new nuclear monitoring arrangement.

The Europeans found little appetite for talk. Gulf states cited intelligence reports showing Iran had restarted 60% uranium enrichment at its Fordow facility. Satellite images published by the Institute for Science and International Security appeared to confirm the claim.

Oil markets convulsed. Brent crude hit $105 per barrel, its highest level since Russia’s 2022 invasion of Ukraine. The price spike alone added $200 million daily to Saudi Arabia’s oil revenue.

Regional airlines took massive hits. Emirates cancelled 30% of its flights to European destinations. Qatar Airways grounded half its Boeing 777 fleet. Insurance premiums for Gulf shipping routes quadrupled overnight.

“Nobody will insure a tanker transiting the Strait of Hormuz right now,” said Richard Meade, editor of shipping journal Lloyd’s List. “The risk is too high.”

American consumers felt immediate impact. Gasoline prices rose 37 cents per gallon nationally in a single week. California drivers paid over $6 per gallon for regular unleaded. The White House announced it would release 15 million barrels from the Strategic Petroleum Reserve.

President Donald Trump convened an emergency meeting of the National Security Council. He emerged with a warning for Iran but no specific threat of US military action.

“We’re watching. We’re ready,” Trump said in the Oval Office. “But we’re not going to be stupid about it.”

Background

The current crisis traces back to Trump’s 2018 decision to abandon the Iran nuclear deal negotiated by his predecessor. Joe Biden had tried to revive the agreement during his term but talks collapsed in 2024 after Iran demanded guarantees no future US president could withdraw again.

Israel has conducted a shadow war against Iran’s nuclear program for over a decade. Assassinations of Iranian scientists, cyber attacks on centrifuges, and mysterious explosions at nuclear facilities have marked the campaign. The Natanz strike represents an escalation from covert sabotage to open military action.

Iran responded by moving its nuclear work deeper underground and expanding uranium enrichment closer to weapons grade. Western intelligence agencies believe Iran could produce enough weapons-grade uranium for a single bomb within weeks if it chose to do so.

What’s Next

Iran’s Supreme National Security Council meets this weekend to consider its response options. Israeli intelligence expects either a missile attack on Israeli territory or strikes against Gulf oil facilities. The US Navy has moved two carrier groups into the Arabian Sea.

Congress returns Monday to debate emergency military aid packages for Israel and Gulf allies. Democratic leaders already signalled support despite previous opposition to Saudi arms sales. The votes should pass by wide margins.