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Friday, July 10, 2015

U.S. approves a $1.9B arms sale to Israel; analysts say it’s probably meant to offset objections to Iran nuke deal

Guided Bomb Unit-28 (GBU-28) BLU-113 PenetratorAn agreement to curb Iran’s nuclear program could create a bonanza for U.S. defense contractors who already are benefiting as the Obama administration tries to assuage Israeli and Gulf Arab concerns by cutting deals for more than $6 billion in military hardware.

The details of a potential deal being negotiated between Iran and six world powers — China, France, Germany, Russia, the U.K. and U.S. — would determine what steps the U.S. takes to help its allies.

A nuclear agreement is likely to prompt Mideast partners to seek improved defense systems from American contractors such as Boeing Co., Lockheed Martin Corp. and Raytheon Co. as well as weapons-makers in France and elsewhere.

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