Israel, in the last week of August 2026, announced that it had signed a deal with Athens worth about 3 billion euros to build the “Iron Shield” air defense system for Greece; a deal that has sparked a wave of questions and analysis on the international stage.

The Israeli Ministry of Defense said in a statement: “Under this agreement, Israel will build a comprehensive air defense system for Greece that relies entirely on Israeli-made systems and on extensive operational experience that the Israel Defense Forces acquired during the war.”

Benjamin Netanyahu, the prime minister of Israel, said: “The security agreement signed with Greece, which is considered one of the largest deals in this country’s history, is a direct continuation of the alliance in the Eastern Mediterranean that we established a decade ago with Greece and Cyprus. This agreement is also further proof of the impressive capabilities of Israel’s defense industries and technology.”

He added: “This step demonstrates Israel’s strength, our reliance on defense exports, and the strengthening of our regional alliances.”

Nikos Dendias, Greece’s defense minister, said: “Greece is the first member country of the European Union to use a system similar to the Israeli system.”

Greece is now one of five European NATO member states that, amid decades of tension with its neighbor Turkey, has raised its military spending to at least 3.5% of GDP.

Tensions between Israel and Turkey have also increased.