Iran deal will strain US-Israeli ties

Significance

The accord threatens to deepen the longest crisis in US-Israeli relations. Ongoing political strife, strategic differences and potential clashes over implementation and verification of the nuclear deal will further complicate the next 18 months.

Impacts

• The F-35 deal will provide a boost to the capabilities of Israel's defence industry, which provides components for the jet.
• The F-35s will increase Israeli intelligence capabilities, as they are designed to be a communications platform as well as strike force.
• However, greater US drone sales will cut into the dominant Israeli share of the market, hurting profits in that growing sector.