Germany’s decision to restrict military exports to Israel that could be used in Gaza marks a dramatic shift. This results in huge losses for Israel’s defense supply and military operations. Germany is Israel’s second-largest arms supplier, accounting for over 30% of its main arms purchases. Arms including vital naval assets such as Sa’ar 6-class frigates, and military shipments to Israel reached approximately €485 million ($565 million) between October 2023 and mid-2025.
Suspension of military exports to Israel especially involves weapons that could be deployed in the Gaza Strip. It is the part of Israel’s planned military effort to retake control of Gaza City. The German government declared that it will not permit the shipment of any military weapons that could be used in Gaza “until further notice.” While Germany supports Israel’s right to self-defense and opposes Hamas. It expressed deep concern over the escalating humanitarian catastrophe and civilian suffering in Gaza, which prompted this policy shift.
The cost for Israel includes immediate limits on receiving spare parts and military apparatus required for operations. Germany’s embargo threatens Israel’s access to important naval and defense capabilities that have played a role in the current war. Given Germany’s status as a significant arms supplier alongside the United States. This decision affects Israel’s weapon supply chain and puts political pressure on its military strategy.
Financially, the ban of military exports to Israel threatens a significant percentage of Israel’s military procurement budgets, which are related to German arms shipments. Politically, it indicates worldwide condemnation and may encourage other countries to implement similar limits, so increasing Israel’s isolation in terms of external military backing. Germany also urged Israel not to pursue annexation plans in the West Bank, escalating international tensions.