US halts Israel arms shipment due to Rafah offensive; Israeli drone startup secures $40m funding

The ongoing conflict in the Gaza Strip has sparked a series of developments on the international stage, with tensions rising between the United States and Israel over a paused arms shipment and China using the situation as a wedge issue to split the US from the Global South. Additionally, Iran is facing pressure from the United Nations’ nuclear watchdog to comply with monitoring demands or face diplomatic censure.

A Tel Aviv-based startup, Xtend, which supplies a drone operating system to the US Defense Department and the Israeli army, has raised $40 million to expand its civilian business after its technology was deployed on the battlefield in the Gaza Strip. This funding round, led by Chartered Group, highlights the opportunities for smaller dual-use players in the defense industry amidst the conflict.

The US has paused a shipment of “high-payload” munitions to Israel over concerns about a potential military offensive on the Gazan city of Rafah. Defense Secretary Lloyd Austin emphasized the need for Israel to protect civilians in Rafah and expressed worries about the potential collateral damage that large bombs could cause in densely populated areas.

The tensions between Israel and the US have escalated, with President Joe Biden opposing an attack on Rafah and the delay in the weapons shipment causing frustration among Israeli officials. The conflict in Gaza has already resulted in significant casualties, with both sides engaging in military operations that have raised concerns about civilian safety.

China has seized on the global outrage over the Gaza conflict to push its own agenda at the United Nations and online, using the situation as a means to paint the US as a contributor to global insecurity. The Chinese government’s efforts to sway opinion in developing countries against the US have been met with pushback from Washington and some Global South nations.

Meanwhile, Iran has been given a deadline by the UN nuclear watchdog to comply with monitoring demands or face diplomatic censure. The International Atomic Energy Agency has urged Iran to improve monitoring measures and resolve a probe into uranium traces discovered at undeclared locations, with the US issuing an ultimatum for cooperation or potential sanctions.

As the conflict in the Gaza Strip continues to unfold, the international community is closely monitoring the situation and the various diplomatic and military developments that are shaping the region’s future. The stakes are high, and the actions of key players like the US, Israel, China, and Iran will have far-reaching implications for the Middle East and beyond.