Breaking Update
Israel & Germany Formalize Expanded Arrow 3 Defense Deal
Israel and Germany formalized an expanded Arrow 3 missile defense agreement, valued at an additional $3.1 billion, bringing the total deal to over $6.7 billion.
Jerusalem, 18 December, 2025 (TPS-IL) — Israeli and German defense officials in Germany formally signed an expanded agreement for the sale of the Arrow 3 missile defense system on Thursday, the Israeli Defense Ministry announced.
The expanded deal is valued at an additional $3.1 billion, bringing the total agreement to more than $6.7 billion, making it Israel’s largest defense export deal to date.
Arrow 3 is an exo-atmospheric missile defense system designed to intercept long-range ballistic missiles.
The system scored its first operational success when it shot down a ballistic missile fired by Iran-backed Houthi rebels in Yemen in November 2023. It is widely believed to be the first time a missile was intercepted in outer space, though Israeli officials have not confirmed this.
