The cancellations mark one front in a broader campaign by Spanish Prime Minister Pedro Sánchez, who has taken an unusually sharp tone toward Israel during the Gaza war. In recent weeks Spain imposed an arms embargo, barring Israeli-linked supply vessels from docking in its ports and halting exports of raw materials, forcing Israeli firms to seek alternatives.

Over the weekend, Spain and Italy deployed naval ships to escort the “Sumud” flotilla, which departed Barcelona in late August with the stated aim of breaking Israel’s naval blockade of Gaza. Ironically, the Spanish warship sent to accompany the flotilla carries Rafael-made weapons and defense systems. The governments announced the move after flotilla organizers said their vessels had been attacked by drones, causing damage to several ships.

Israeli defense officials have not commented publicly on Spain’s actions. But one senior industry executive told the Israeli financial daily Calcalist: “After the war they’ll come crawling back. They need our weapons more than we need them. They’re a small market. Still, this requires us to stay alert regarding other markets.”

Executives note that amid a global arms race, canceled systems like Spike missiles can be quickly diverted to other buyers. But they warn that the real threat lies in the continued freeze on new contracts. Deals worth billions of dollars have been stalled for months. Foreign procurement officials say the hesitation stems from hostile public opinion toward Israel, fear of domestic unrest, and a desire to avoid politically sensitive decisions.