On September 2, 2026, Greece and Israel signed a $3.5 billion defense deal to establish an integrated defense network known as the Achilles Shield. This agreement includes the David’s Sling and Spyder interceptors, the Barak air and missile defense system, and multimission radars, along with a separate contract for Drone Dome systems to protect strategic locations from unmanned aerial vehicles (UAVs). This deal marks the largest defense agreement between the two nations and is considered one of Israel's significant export agreements in recent years.
The agreement occurs during a period when Israel's global standing is reportedly low, with 65 percent of Greek citizens viewing Israel unfavorably. The deal is influenced by Israel's ongoing conflict with Iran, highlighted by an Iranian drone strike in Cyprus earlier in March 2026, which raised concerns in Greece. Greek Defense Minister Nikos Dendias emphasized the need for Athens to develop its own anti-drone capabilities in response to these threats.
Israel has a history of utilizing its defense industry to strengthen bilateral ties through arms diplomacy. Additionally, the deal aligns with Israel's “periphery doctrine,” which seeks to build relationships with non-Arab states to counter threats from neighboring countries, particularly Turkiye. Relations between Israel and Turkiye have deteriorated since 2008, leading Greece to fill the void left by the previous partnership.
The discovery of gas reserves in the eastern Mediterranean has further solidified the cooperation between Israel, Greece, and Cyprus, particularly in energy and maritime security. The growing regional divisions have prompted alliances, such as Israeli Prime Minister Netanyahu's proposed “hexagon alliance” involving Israel, Greece, Cyprus, India, and other nations. Meanwhile, a competing alliance including Saudi Arabia, Turkiye, and Pakistan has emerged.
Despite public skepticism regarding Israel's policies, the defense cooperation between Greece and Israel continues to deepen, reflecting a complex dynamic where security collaboration persists alongside critical public sentiment. The conflicts affecting Israel's international reputation have paradoxically increased the demand for its military expertise and defense technology.