Analysis & Reports

The U.S. military has utilized a significant portion of its missile defense interceptors in ongoing operations against Iran, which may hinder its ability to defend Taiwan in the event of a Chinese invasion. The Congressional Budget Office warns that the depletion of these interceptors could take years to recover, with costs to replace them estimated at $21.7 billion. The report highlights the strategic implications of this depletion for U.S. defense capabilities in the Indo-Pacific region.

Spectra Group (UK) Ltd secured a €13 million contract involving Comtech’s MTTS Terminals. This contract was announced recently and is associated with a NATO ally.

The U.S. Air Force is modernizing its aerial refueling tanker fleet, focusing on the KC-135 Stratotanker and KC-46A Pegasus. This ongoing recapitalization aims to enhance mission capability and ensure the joint force's success. Officials emphasize the importance of connectivity and industry partnerships to expedite the delivery of capabilities. The modernization efforts will continue for decades, supporting both legacy and new platforms.

Anduril Industries is unable to commence production of FQ-44 Fury drones until the FY27 budget is approved by Congress, expected by December 2023. The company is currently building prototypes and integrating munitions at its Arsenal-1 facility in Columbus, Ohio. The U.S. Air Force anticipates having 500 Collaborative Combat Aircraft in service by 2032, with ongoing tests and integration efforts underway at Creech Air Force Base in Nevada.

USS Georgia retired at Naval Submarine Base Kings Bay on July 27, 2024, marking the beginning of the retirement process for the U.S. Navy's Ohio-class submarines. These submarines, capable of carrying 154 Tomahawk missiles each, represent a significant loss of missile launch positions, totaling 616 across four vessels. The Navy plans to redesignate 19 Virginia-class submarines to partially compensate for this loss, but no direct replacements for the Ohio-class SSGNs are planned.

The U.S. Department of Defense has incurred approximately $38 billion in costs for combat operations in Iran as of August 1, 2023, with ongoing monthly expenses projected at $2-3 billion. Significant expenditures include $21.7 billion for replacing munitions, with a notable depletion of interceptor inventory. The report highlights the financial strain on military resources and the potential implications for future conflicts.

The U.S. military incurred approximately $38 billion in costs from combat operations against Iran through August 1, 2025, depleting a significant portion of its missile-defense interceptors. The conflict has consumed between one-half and two-thirds of the inventory of systems like Patriot and THAAD, with rebuilding efforts expected to take at least five years. The campaign involved extensive use of munitions, particularly during the initial phases of Operation Epic Fury, which included around 250 tactical aircraft.

Russian forces continue to launch counterattacks in Ukraine, suffering over 30,000 casualties monthly. Ukraine has regained initiative and territory in the Donetsk region, disrupting Russian objectives. Putin remains fixated on capturing the entire Donetsk oblast before considering peace talks, despite the improbability of achieving this goal. The situation reflects a significant shift in battlefield dynamics, with Ukraine successfully countering Russian advances.

Iranian strikes damaged hundreds of U.S. military and diplomatic buildings across Kuwait, Bahrain, Qatar, UAE, Saudi Arabia, Iraq, Oman, and Jordan. As of August 27, 2023, the strikes resulted in the destruction of dozens of U.S. aircraft and 18 military personnel fatalities. The total cost of Operation Epic Fury has reached approximately $33.4 billion, with significant impacts on U.S. military infrastructure and logistics.

U.S. Air Force officials praised the F-35 Lightning II for its combat readiness during recent operations in the Middle East. The aircraft demonstrated high mission-capable rates and effective maintenance, even in contested environments. Officials noted the F-35's versatility and the need for rapid certification of new weapons to meet emerging mission requirements. The demand for the F-35 is expected to increase as operational needs evolve.

The 34th International Defence Industry Exhibition (MSPO) occurred in Kielce, Poland, from 8 to 11 September 2026, featuring over 1,200 exhibitors and 40,000 visitors. Canada served as the Lead Nation, showcasing its defense capabilities and fostering partnerships with Poland and other NATO allies. The event highlighted Poland's strategic importance in European defense procurement and modernization efforts.

Twenty-Six Defense, a division of Elbit America, is engaged in building and upgrading weapons systems to enhance situational awareness and enable longer-range attacks. This development aims to address the challenges posed by modern warfare.

Japan is developing quantum sensors to be mounted on inexpensive drones for surveillance of Chinese submarine transit routes in the Pacific Ocean. The Defense Ministry aims to have this technology ready by fiscal 2031. Meanwhile, China is also enhancing its anti-submarine capabilities with new drone technologies and vessels.

Iranian forces shot down three U.S. MQ-1 drones over the Strait of Hormuz on September 15. The Islamic Revolutionary Guard Corps reported that these interceptions were part of coordinated operations under Iran's national air defense network. The U.S. has yet to respond to these incidents.

Saudi Arabia conducted 52 airstrikes in Yemen over the past 24 hours, targeting civilian infrastructure in Taiz, Al-Jawf, Baidha, Saada, and Amran. The airstrikes were executed by F-15 and Typhoon fighter jets from bases in Khamis Mushait and Taif. A Houthi spokesperson condemned the attacks and indicated that they would respond.

The U.S. government plans to sell $2.8 billion worth of military arms to Israel, including 20,000 MK-84 bombs and 20,000 BLU-117 bombs. This arms sale has been informally communicated to relevant congressional committees. Israel has been using these powerful bombs in the Gaza Strip and Lebanon, leading to serious casualties and drawing attention from human rights experts.

The U.S. Air Force's F-35 Lightning II performed effectively in the Iran War due to prioritized logistics and spare parts support. Despite previous readiness issues, the aircraft's operational tempo increased significantly. However, concerns remain about the sustainability of this support given the fleet's size and logistical challenges.

The U.S. Air Force confirmed the existence of space control weapons capable of offensive operations during a meeting in Maryland on October 14, 2023. This acknowledgment marks the first time the U.S. has recognized its offensive capabilities in space, raising concerns about a potential arms race. Experts warn that this development could lead to increased military tensions and conflict in outer space.

Rafael Advanced Defense Systems is integrating its SPICE 1000 air-to-surface munition onto Israeli F-35 fighter aircraft in Jerusalem. This integration, a joint project with Lockheed Martin, is expected to enhance the strike capabilities of the Israeli Air Force and will allow other F-35 operators to utilize the munition in the future. The SPICE 1000 has been operational with the Israel Air Force since 2017 and provides a stand-off strike capability exceeding 75 miles.

On 9 September 2026, Poland signed a $4 billion loan guarantee with the U.S. for military financing, bringing total U.S. military aid to nearly $20 billion. Poland has received 8 F-35A Husarz fighters at Łask airbase and plans to acquire 32 more. Reconstruction of the Świdwin airbase is ongoing to support additional aircraft operations.