Israel's large defense firms have European subsidiaries that manufacture components for Israeli weapons systems. Israel fears that arms embargoes by the U.K., Germany and other countries will impair their ability to supply critical equipment to Israel

Israel's deteriorating international standing amid the ongoing war, coupled with various countries' restrictions on arms exports to Israel, could lead to a situation where wholly Israeli-owned foreign defense companies are unable to export weaponry to Israel.

In recent months, several countries have taken both public and discreet measures to avoid being seen as aiding Israel, which stands accused of committing genocide in Gaza. The U.K. has revoked 30 export licenses and implemented changes that will complicate future defense exports to Israel. Germany, a major exporter to Israel (particularly of submarines and corvettes), has effectively restricted defense exports.

While Berlin denied reports of a complete export halt, local media reported a dramatic reduction in licenses being issued, citing a year-long delay in an Israeli request for 10,000 tank shells. On Friday, French President Emmanuel Macron also called for restricting arms exports to Israel.