A new reality is emerging after nearly two years of fighting in the South. The signing of a new framework for Gaza, the changing dynamics in Syria and Lebanon with Hezbollah, the recent operation in Iran, and simultaneous developments across Europe and Asia all mark not the end of an era but the opening of an entirely new one.
Israel now faces an operational, political, and economic reality that demands a fundamental strategic rethink. Regional and global “rules of the game” are shifting rapidly, presenting Israel with a complex combination of threats, opportunities, and the urgent need for a new hierarchy of priorities. At the heart of this lies the importance of adopting a strategic and holistic vision.
The return of regional actors
The Middle East is undergoing a significant realignment. Syria is almost nonexistent and not felt. There is a potential agreement on the table, but it is not happening right now. Turkey is reasserting itself as a regional power, with growing military influence and an increasingly independent defense industry.
This opens new avenues for economic cooperation even after years of strained political ties, because in business, there are no permanent hard feelings. US support for Turkey must also be factored into Israel’s regional calculus.
Qatar continues to operate under an American security umbrella, a reality that both constrains Israel’s freedom of action and creates potential economic openings. Saudi Arabia is signaling interest in advancing normalization under conditions that include political reforms, while simultaneously expressing interest in acquiring advanced defense systems.
Taken together, these factors paint a complex regional picture: on the one hand, the emergence of a potential moderate Sunni axis comprising Saudi Arabia and Turkey; on the other, destabilizing nodes, such as Qatar and Iran, that could complicate this emerging architecture.
The IDF: A profound strategic shift
Against this backdrop, Israel itself is changing course. The IDF is undergoing a deep transformation in force-building and procurement: shifting toward advanced offensive and defensive systems, integrating artificial intelligence and network-centric warfare, developing operational laser systems, and preparing for a multifront campaign spanning Lebanon, Iran, the Red Sea, cyberspace, and a war of consciousness that is rapidly reshaping the character of conflict.
This transformation raises hard questions: How will technological upgrades interact with the development of human capital? Will short-term investments compromise long-term capabilities? How can Israel balance indigenous innovation with the preservation of its strategic partnership with the United States?
Europe: Rising demand and political sensitivities
Geopolitical shifts are also felt strongly in Europe. The prolonged war in Ukraine has exposed the continent’s military limitations and triggered accelerated procurement programs on a scale not seen in decades.
Germany, Poland, and the Scandinavian states are seeking reliable suppliers of air-defense systems, cyber capabilities, intelligence tools, and command and control technologies. European industries are struggling to meet demand, and Israel is seen as a trusted supplier of proven technologies with real operational experience.
At the same time, Israel faces political sensitivities in Europe regarding the war in Gaza, a constraint that requires a careful balance between security interests and public and diplomatic scrutiny.
Europe also supplies key components and subsystems for Israel’s defense industries. Israel must therefore prepare for the possibility of embargoes or export restrictions from individual European states.
Asia: New dynamics in the arms race
Parallel developments in Asia are equally significant. Around China, Japan, Taiwan, India, and Pakistan, a rapid arms race is unfolding, including the development of hypersonic missiles, expansion of security alliances, and massive investments in naval and air capabilities. This is a huge and growing market, hungry for Israeli technologies, both soft and hard defense systems, and rapid production solutions.
Israel is already engaged in parts of Asia, especially through its partnerships with India. Nevertheless, it must navigate carefully between immense economic potential and the foreign-policy and export-control constraints linked to its strategic relationship with the United States.
Meanwhile, Indonesia is sending initial signals of openness, primarily in the economic sphere, while simultaneously strengthening the broader Sunni Muslim coalition, a trend that has both diplomatic and strategic implications.
The need for a coordinated, not reactive, approach
All these shifts are taking place while Israel continues to act largely in a reactive and compartmentalized manner. Each theater is treated separately, every development triggers an isolated response, and each government agency pulls in its own direction. Today’s reality demands something else entirely: a synchronized strategy that integrates security, diplomacy, industry, and economic policy.
To fully seize the opportunities of this moment, Israel must develop a coherent national interest map, build regional deal packages rather than ad-hoc arrangements, and incorporate the private sector and innovation ecosystem into its broader strategic effort.
This, in turn, requires institutional adaptation. There is currently no single body that coordinates Israel’s security-economic strategy at the national level. The fragmentation among the Defense Ministry, the IDF, the Foreign Ministry, the National Security Council, and other government agencies creates friction, competition over resources, and often missed opportunities. Israel may need to establish a permanent interagency structure or a dedicated strategic body to coordinate policy, synchronize between different theaters, and transform Israel from a tactical actor into a strategic player with a long-term vision.
Israel’s strategic moment
The new framework in Gaza is not an endpoint; it is a starting point. Israel stands at a crossroads in a rapidly changing world: Global demand for defense technologies is soaring, regional systems are being rebuilt, and the race for geopolitical influence is intensifying.
The central question is not whether Israel can keep pace, but whether it chooses to. In a global arena where every player is vying for a place on the front row of military and technological history, Israel must decide: Will it remain an ad-hoc technology supplier or become a strategic actor capable of shaping coordinated geopolitical moves?
The balls are in the air; the real question is where and in what order Israel will land them.